The City Limited Report and Financial Statements as at and for the year ended 31 December 2015

Independent Auditor’s Report to the Shareholders of Limited Consolidated Statement of Changes in Equity for the year ended 31 December 2015 Profit and Loss Account for the year ended 31 December 2015 Report on the Financial Statements Attributable to the equity holders of the Bank Non controlling 2015 2014 We have audited the accompanying consolidated financial statements of The City Bank Limited and its subsidiaries (the “Group”) Particulars Paid up capital Statutory Share premium Asset General Revaluation Surplus in Total Total equity as well as the separate financial statements of The City Bank Limited (the “Bank”), which comprise the consolidated balance sheet reserve revaluation reserve gain/(loss) on profit and loss interest Note Taka Taka and the separate balance sheet as at 31 December 2015, and the consolidated and separate profit and loss accounts, consolidated reserve investments account and separate statements of changes in equity and consolidated and separate cash flow statements for the year then ended, and a Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka summary of significant accounting policies and other explanatory information. Balance as at 1 January 2015 8,340,933,630 4,103,894,030 1,082,116,244 4,711,395,054 11,394,928 3,255,456,556 801,804,006 22,306,994,448 3,049,884 22,310,044,332 Interest income/profit on investments 25.a 15,324,758,903 14,029,067,499 Management’s responsibility for the financial statements and internal controls Surplus/(deficit) on account of revaluation ------Management is responsible for the preparation of consolidated financial statements of the Group and also separate financial of properties Interest paid/profit shared on deposits and borrowings etc. 26.a (9,818,866,758) (8,906,622,116) statements of the Bank that give a true and fair view in accordance with Bangladesh Financial Reporting Standards as explained in Surplus/(deficit) on account of revaluation - - - - - 42,763,789 - 42,763,789 - 42,763,789 Net interest income/profit on investments 5,505,892,145 5,122,445,383 note 2.1 and for such internal control as management determines is necessary to enable the preparation of consolidated financial of investments statements of the Group and also separate financial statements of the Bank that are free from material misstatement, whether due Currency translation differences ------(12,950,528) (12,950,528) (534,806) (13,485,334) Investment income 27.a 4,390,718,045 2,789,919,779 to fraud or error. The Bank Company Act, 1991 and the Regulations require the Management to ensure effective Adjustment of revaluation reserve with retained internal audit, internal control and risk management functions of the Bank. The Management is also required to make a self- earnings for charging depreciation of revalued - - - (21,268,314) - - 21,268,314 - - - Commission, exchange and brokerage 28.a 1,884,279,518 1,769,286,388 assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries. carrying amount Other operating income 29.a 1,003,435,729 857,064,973 Net profit/(loss) for the year 3,593,116,965 3,593,116,965 25,372 3,593,142,337 Auditor’s Responsibility Dividend (bonus share) 417,046,680 - (417,046,680) ------7,278,433,292 5,416,271,140 Our responsibility is to express an opinion on these consolidated financial statements of the Group and the separate financial Allocation for prejudice shares - - (4,212,552) - - - 4,212,552 - - - statements of the Bank based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing. Those Dividend (Cash) ------(1,348,822,022) (1,348,822,022) (5,670) (1,348,827,692) Total operating income (A) 12,784,325,437 10,538,716,523 standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about Appropriation made during year - 898,922,614 - - - - (898,922,614) - - - whether the consolidated financial statements of the Group and separate financial statements of the Bank are free from material Balance as at 31 December 2015 8,757,980,310 5,002,816,644 660,857,013 4,690,126,740 11,394,928 3,298,220,345 2,159,706,673 24,581,102,653 2,534,780 24,583,637,433 misstatement. Salaries and allowances 30 3,166,373,641 2,846,791,183 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial Consolidated Statement of Changes in Equity for the year ended 31 December 2014 statements of the Group and separate financial statements of the Bank. The procedures selected depend on the auditor’s judgment, Rent, taxes, insurance, electricity, etc. 31.a 674,541,834 601,600,416 Attributable to the equity holders of the Bank including the assessment of the risks of material misstatement of the consolidated financial statements of the Group and separate Non Legal expenses 32.a 25,639,943 24,576,045 financial statements of the Bank, whether due to fraud or error. In making those risk assessments, the auditor considers internal Particulars Paid up capital Statutory Share premium Asset General Revaluation Surplus in Total controlling Total equity control relevant to the entity’s preparation of consolidated financial statements of the Group and separate financial statements of reserve revaluation reserve gain/(loss) on profit andloss interest Postage, stamp, telecommunication, etc. 33.a 70,980,951 80,017,694 the Bank that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit reserve investments account also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka Stationery, printing, advertisements, etc. 34.a 183,857,261 201,469,360 management, as well as evaluating the overall presentation of the consolidated financial statements of the Group and also separate Balance as at 1 January 2014 6,950,778,030 3,384,692,023 1,924,634,700 3,692,068,870 11,394,928 1,874,893,562 349,728,341 18,188,190,454 5,819,904 18,194,010,358 Chief Executive's salary and fees 35 16,409,425 15,046,921 financial statements of the Bank. Prior year adjustment ------(1,452,159) (1,452,159) (54) (1,452,213) We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Surplus/(deficit) on account of revaluation Directors' fees 36.a 1,244,000 1,145,000 - - - 1,030,989,644 - - - 1,030,989,644 - 1,030,989,644 Opinion of properties Auditors' fees 1,209,750 1,071,750 Surplus/(deficit) on account of revaluation In our opinion, the consolidated financial statements of the Group and also separate financial statements of the Bank give a - - - - - 1,380,562,994 - 1,380,562,994 - 1,380,562,994 true and fair view of the consolidated financial position of the Group and the separate financial position of the Bank as at 31 of investments Depreciation and repair of Bank's assets 37.a 751,381,043 655,357,809 Currency translation differences ------(192) (192) (177,672) (177,864) December 2015, and of its consolidated and separate financial performance and its consolidated and separate cash flows for the Adjustment of revaluation reserve with retained Other expenses 38.a 1,219,574,521 975,630,311 year then ended in accordance with Bangladesh Financial Reporting Standards as explained in note 2.1. earnings for charging depreciation of revalued - - - (11,663,460) - 11,663,460 - - - Total operating expenses (B) 6,111,212,369 5,402,706,489 Report on Other Legal and Regulatory Requirements carrying amount In accordance with the Companies Act 1994, Securities and Exchange Rules 1987, the Bank Company Act, 1991 and the rules Net profit/(loss) for the year ------1,708,703,707 1,708,703,707 (2,592,294) 1,706,111,413 Profit before provision (C = A-B) 6,673,113,068 5,136,010,034 Dividend (bonus share) 1,390,155,600 - (842,518,456) - - - (547,637,144) - - - and regulations issued by Bangladesh Bank, we also report the following: Appropriation made during year - 719,202,007 - - - - (719,202,007) - - - Provision for loans and advances/investments 39.a (2,147,500,000) (1,540,000,000) a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the Balance as at 31 December 2014 8,340,933,630 4,103,894,030 1,082,116,244 4,711,395,054 11,394,928 3,255,456,556 801,804,006 22,306,994,448 3,049,884 22,310,044,332 purpose of our audit and made due verification thereof; Provision for off-balance sheet exposures (21,000,000) - b) to the extent noted during the course of our audit work performed on the basis stated under the Auditor’s Responsibility section The annexed notes 1 to 49 form an integral part of these financial statements. in forming the above opinion on the consolidated financial statements of the Group and the financial statements of the Bank and Other provision (10,000,000) - considering the reports of the Management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries as Total provision (D) (2,178,500,000) (1,540,000,000) stated under the Management’s Responsibility for the Financial Statements and Internal Control: Consolidated Cash Flow Statement for the year ended 31 December 2015 i) internal audit, internal control and risk management arrangements of the Group and the Bank as disclosed in note 49 of the financial Total profit before taxes (E = C+D) 4,494,613,068 3,596,010,034 statements appeared to be materially adequate; and ii) nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and exception or Provision for taxation (F) 40.a anything detrimental committed by employees of the Bank and its related entities other than matters disclosed in these financial 2015 2014 statements; Current tax expense (1,588,720,538) (1,531,252,396) c) financial statements of the subsidiaries of the Bank have been audited by other auditors and have been properly reflected in the Note Taka Taka consolidated financial statements; A) Cash flows from operating activities Deferred tax income / (expense) 672,989,539 150,182,944 d) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it appeared from our Interest receipts/investment income receipts in cash 15,150,223,509 14,029,697,224 Total provision for tax (915,730,999) (1,381,069,452) examination of those books; e) the consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance sheet and separate Interest payments/profit paid on deposits (7,264,485,479) (7,092,741,095) Net profit after tax (G = E+F) 3,578,882,069 2,214,940,582 profit and loss account of the Bank dealt with by the report are in agreement with the books of account; Dividend receipts 243,250,240 178,487,759 f) the expenditure incurred was for the purposes of the Bank’s business; Fees and commission receipts in cash 1,350,573,554 1,312,545,675 g) the consolidated financial statements of the Group and the separate financial statements of the Bank have been drawn up in conformity with Appropriations prevailing rules, regulations and accounting standards as well as with related guidance issued by Bangladesh Bank; Recoveries of loans previously written-off 16.a.1 365,813,326 151,243,705 h) adequate provisions have been made for advances which are, in our opinion, doubtful of recovery; Cash payments to employees (3,127,614,331) (2,814,905,381) Statutory reserve 898,922,614 719,202,007 i) the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements; Cash payments to suppliers (97,908,144) (96,090,942) General reserve - - j) the information and explanation required by us have been received and found satisfactory; and Income taxes paid (980,052,952) (1,146,568,032) k) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 3,385 person hours for the audit of the 898,922,614 719,202,007 books and accounts of the Bank. Receipts from other operating activities 41 5,411,123,474 3,276,239,351 Payments for other operating activities 42 (2,390,415,357) (2,421,615,271) Retained surplus for the year 2,679,959,455 1,495,738,575 Rahman Rahman Huq Cash generated from operating activities before changes in Earnings per share (EPS) 45.a 4.09 2.53 Dhaka, 28 April 2016 operating assets and liabilities (i) 8,660,507,840 5,376,292,993

Consolidated Balance Sheet as at 31 December 2015 Increase/decrease in operating assets and liabilities The annexed notes 1 to 49 form an integral part of these financial statements. Loans and advances to customers (26,524,935,106) (25,622,087,613) 2015 2014 Other assets 43 (959,040,156) (104,929,648) PROPERTY AND ASSETS Note Taka Taka Deposits from other /borrowings 1,631,382,333 6,290,832,509 ______Deposits from customers 28,215,357,254 14,127,393,475 Managing Director & CEO Director Director Chairman Cash Other liabilities 44 (695,726,714) (1,566,832,664) In hand (including foreign currencies) 4 2,998,982,425 2,497,043,107 As per our report of same date. Balance with Bangladesh Bank and its agent bank(s) Cash generated from operating assets and liabilities (ii) 1,667,037,611 (6,875,623,941) (including foreign currencies) 4.a.1 12,438,634,907 8,431,511,967 Net cash flow from operating activities (i+ii) 10,327,545,451 (1,499,330,948) 15,437,617,332 10,928,555,074 ______Balance with other banks and financial institutions 5 B) Cash flows from investing activities In Bangladesh 15,502,528,823 3,632,420,929 Dhaka, April 28, 2016 Auditor Outside Bangladesh 413,446,435 1,559,041,017 Proceeds from sale of securities 564,988,941 417,918,484 15,915,975,258 5,191,461,946 Payment for purchase of securities (3,813,963,627) (547,428,283) Statement of Changes in Equity for the year ended 31 December 2015 Money at call and short notice 6 95,379,167 1,998,379,167 Purchase/sale of property, plant and equipment (915,417,326) (670,408,547) Investments 7 Asset Revaluation Surplus in Net cash used in investing activities (4,164,392,012) (799,918,346) Statutory General Government 19,691,517,972 23,737,817,554 Particulars Paid-up capital Share Premium Revaluation gain/(loss) on profit and loss Total equity reserve reserve Others 6,325,444,956 6,689,564,261 reserve investment account 26,016,962,928 30,427,381,815 C) Cash flows from financing activities Taka Taka Taka Taka Taka Taka Taka Taka Loans and advances/investments 8 Issuance of tier-II subordinated bond - 3,000,000,000 Loans, cash credits, overdrafts, etc./investments 138,156,604,652 111,476,616,174 Dividend paid (1,348,827,692) - Bills purchased and discounted 9 4,858,067,512 5,013,120,884 Balance as at 1 January 2015 8,340,933,630 4,103,894,030 1,082,116,244 4,711,395,054 11,394,928 3,222,023,735 1,646,077,481 23,117,835,102 143,014,672,164 116,489,737,058 Net cash from financing activities (1,348,827,692) 3,000,000,000 Fixed assets including premises, furniture and fixtures 10 8,172,221,437 8,144,060,566 Surplus/(deficit) on account of revaluation ------Other assets 11 4,759,716,534 3,360,953,081 D) Net increase in cash and cash equivalents (A+B+C) 4,814,325,747 700,750,706 Non-banking assets 12 792,824,667 384,551,746 of properties Total assets 214,205,369,487 176,925,080,453 E) Effects of exchange rate changes on cash and cash 792,078,114 655,350,490 Surplus/(deficit) on account of revaluation of - - - - - 76,196,610 - 76,196,610 LIABILITIES AND CAPITAL equivalents investments Adjustment for sale of revalued assets ------Liabilities F) Cash and cash equivalents at beginning of the year 29,096,461,058 27,740,359,862 Adjustment of revaluation reserve with retained Tier-II subordinated bond 13 3,000,000,000 3,000,000,000 earnings Borrowings from other banks, financial institutions and agents 14 22,079,989,593 17,196,768,200 G) Cash and cash equivalents at end of the year (D+E+F) 34,702,864,919 29,096,461,058 for charging depreciation of revalued carrying - - - (21,268,314) - - 21,268,314 - Deposits and other accounts 15 amount Current deposits and other accounts 20,417,719,100 14,288,303,427 Net profit for the year ------3,578,882,069 3,578,882,069 Bills payable 1,976,445,056 911,682,504 Cash and cash equivalents at end of the year consists of: Dividend (bonus share) 417,046,680 - (417,046,680) - - - - - Savings bank deposits 31,213,313,434 22,987,673,384 Cash in hand (including foreign currencies) 2,998,982,425 2,497,043,107 Fixed deposits 89,798,021,718 80,254,321,798 Allocation for prejudice shares - - (4,212,552) - - - 4,212,552 - Bearer certificate of deposit - - Balance with Bangladesh Bank and its agent bank(s) 12,438,634,907 8,431,511,967 Dividend (Cash) (1,263,777,692) (1,263,777,692) - 143,405,499,308 118,441,981,113 (including foreign currencies) Appropriation made during year - 898,922,614 - - - (898,922,614) - Balance as at 31 December 2015 8,757,980,310 5,002,816,644 660,857,013 4,690,126,740 11,394,928 3,298,220,345 3,087,740,110 25,509,136,090 Balance with other banks and financial institutions 15,915,975,258 5,191,461,946 Other liabilities 16 21,136,243,153 15,976,286,808 Money at call and short notice 95,379,167 1,998,379,167 Total liabilities 189,621,732,054 154,615,036,121 Capital/shareholders' equity Government Securities 3,253,893,162 10,978,064,871 Statement of Changes in Equity for the year ended 31 December 2014 Paidup capital 17 8,757,980,310 8,340,933,630 34,702,864,919 29,096,461,058 Statutory reserve 18 5,002,816,644 4,103,894,030 Asset Revaluation Surplus in Statutory Other Share premium 19 660,857,013 1,082,116,244 Particulars Paid-up capital Share Premium Revaluation gain/(loss) on profit and loss Total equity The annexed notes 1 to 49 form an integral part of these financial statements. reserve reserve Other reserve 20 7,999,742,013 7,978,246,538 reserve investment account Surplus in profit and loss account 21 2,159,706,674 801,804,006 Total shareholders' equity 24,581,102,654 22,306,994,448 Taka Taka Taka Taka Taka Taka Taka Taka Non controlling interest 22 2,534,779 3,049,884 Total equity 24,583,637,433 22,310,044,332 Balance Sheet as at 31 December 2015 Balance as at 1 January 2014 6,950,778,030 3,384,692,023 1,924,634,700 3,692,068,870 11,394,928 1,874,893,562 686,312,590 18,524,774,703 Total liabilities and shareholders' equity 214,205,369,487 176,925,080,453 2015 2014 PROPERTY AND ASSETS Note Taka Taka Surplus/(deficit) on account of revaluation - - - 1,030,989,644 - - - 1,030,989,644 OFF-BALANCE SHEET ITEMS of properties Contingent liabilities Cash Acceptances and endorsements 13,190,254,052 11,057,333,323 Surplus/(deficit) on account of revaluation of - - - - - 1,347,130,173 - 1,347,130,173 In hand (including foreign currencies) 4.a 3,028,046,419 2,504,456,546 Letters of guarantee 23.1 10,218,482,911 13,089,666,520 investments Irrevocable letters of credit 23.2 13,817,709,300 9,569,305,671 Balance with Bangladesh Bank and its agent bank (s) Bills for collection 23.3 10,854,384,996 10,501,797,506 (including foreign currencies) 4.a.1 12,438,634,907 8,431,511,967 Adjustment for sale of revalued assets ------Other contingent liabilities - - 15,466,681,326 10,935,968,513 Adjustment of revaluation reserve with retained Total 48,080,831,259 44,218,103,020 Balance with other banks and financial institutions 5.a earnings for charging depreciation of revalued carrying - - - (11,663,460) - - 11,663,460 - Other commitments In Bangladesh 15,355,924,462 3,480,471,770 amount Documentary credits and short term trade-related transactions - - Outside Bangladesh 263,921,673 1,493,352,573 Forward assets purchased and forward deposits placed 23.4 2,045,042,200 2,124,260,400 15,619,846,135 4,973,824,343 Net profit for the year ------2,214,940,582 2,214,940,582 Undrawn note issuance and revolving underwriting facilities - - Undrawn formal standby facilities, credit lines and other commitments - - Money at call and short notice 6 95,379,167 1,998,379,167 Other commitments - - Investments 7.a Dividend (bonus share) 1,390,155,600 - (842,518,456) - - - (547,637,144) - Total 2,045,042,200 2,124,260,400 Government 19,691,517,972 23,630,557,854 Total Off-Balance Sheet items including contingent liabilities 50,125,873,459 46,342,363,420 Others 4,923,298,995 5,079,174,206 Appropriation made during year - 719,202,007 - - - - (719,202,007) - 24,614,816,967 28,709,732,060 Balance as at 31 December 2014 8,340,933,630 4,103,894,030 1,082,116,244 4,711,395,054 11,394,928 3,222,023,735 1,646,077,481 23,117,835,102 The annexed notes 1 to 49 form an integral part of these financial statements. Loans and advances/investments 8.a Loans, cash credits, overdrafts, etc./investments 138,229,433,769 111,607,480,204 The annexed notes 1 to 49 form an integral part of these financial statements. Bills purchased and discounted 9 4,858,067,512 5,013,120,884 143,087,501,281 116,620,601,088 ______Fixed assets including premises, furniture and fixtures 10.a 8,135,621,490 8,105,956,571 Managing Director & CEO Director Director Chairman Other assets 11.a 7,027,747,460 5,498,502,455 Cash Flow Statement for the year ended 31 December 2015 As per our report of same date. Non-banking assets 12 792,824,667 384,551,746 2015 2014 Total assets 214,840,418,493 177,227,515,943 Note Taka Taka ______A) Cash flows from operating activities Dhaka, 28 April 2016 Auditor LIABILITIES AND CAPITAL Interest receipts/investment income receipts in cash 15,246,792,167 14,085,728,255 Liabilities Consolidated Profit and Loss Account for the year ended 31 December 2015 Interest payments/profit paid on deposits (7,260,488,548) (7,084,664,803) Tier-II subordinated bond 13 3,000,000,000 3,000,000,000 2015 2014 Dividend receipts 210,954,125 147,139,919 Taka Taka Borrowings from other banks, financial institutions and agents 14.a 22,079,989,593 16,943,904,708 Note Fees and commission receipts in cash 1,107,071,619 1,115,401,830 Deposits and other accounts 15.a Interest income/profit on investments 25 15,228,190,245 13,973,036,691 Recoveries of loans previously written off 16.a.1 365,813,326 151,243,705 Interest paid/profit shared on deposits and borrowings etc. 26 (9,822,863,689) (8,914,717,894) Current deposits and other accounts 20,572,164,836 14,473,382,026 Cash payments to employees (3,024,150,787) (2,726,178,145) Net interest income/profit on investments 5,405,326,556 5,058,318,797 Bills payable 1,976,445,056 911,682,504 Cash payments to suppliers (93,912,749) (92,436,022) Investment income 27 4,527,078,328 2,859,628,617 Savings bank deposits 31,213,313,434 22,987,673,384 Income taxes paid 12.a.3 (927,002,383) (1,095,662,188) Commission, exchange and brokerage 28 2,142,651,667 1,968,813,803 Other operating income 29 1,011,514,319 871,413,619 Fixed deposits 89,966,810,084 80,353,777,624 Receipts from other operating activities 41.a 5,298,980,716 3,234,838,731 7,681,244,314 5,699,856,039 Bearer certificate of deposit - - Payments for other operating activities 42.a (2,302,617,835) (1,962,080,967) Total operating income (A) 13,086,570,870 10,758,174,836 143,728,733,410 118,726,515,538 Cash generated from operating activities before changes in Other liabilities 16.a 20,522,559,400 15,439,260,595 Operating expenses operating assets and liabilities (i) 8,621,439,651 5,773,330,315 Total liabilities 189,331,282,403 154,109,680,841 Salaries and allowances 30 3,269,837,185 2,936,827,991 Capital/shareholders' equity Rent, taxes, insurance, electricity, etc. 31 725,631,570 648,204,082 Paidup capital 17.2 8,757,980,310 8,340,933,630 Increase/decrease in operating assets and liabilities Legal expenses 32 26,747,198 25,960,845 Postage, stamp, telecommunication, etc. 33 76,601,819 85,691,022 Statutory reserve 18 5,002,816,644 4,103,894,030 Loans and advances to customers (26,466,900,193) (26,741,971,185) Stationery, printing, advertisements, etc. 34 187,852,656 205,665,635 Share premium 19 660,857,013 1,082,116,244 Other assets 43.a (1,129,322,478) (2,648,852) Chief Executive's salary and fees 35 16,409,425 15,046,921 Other reserve 20.a 7,999,742,013 7,944,813,717 Deposits from other banks/borrowings 1,884,245,825 6,298,503,211 Directors' fees 36 1,477,969 1,493,314 Surplus in profit and loss account 21.a 3,087,740,110 1,646,077,481 Deposits from customers 28,254,056,932 13,971,351,543 Auditors' fees 1,508,573 1,354,850 Charges on loan losses - 306,508,366 Total shareholders' equity 25,509,136,090 23,117,835,102 Other liabilities 44.a (676,783,892) (1,398,579,847) Depreciation and repair 37 767,892,812 671,972,530 Total liabilities and shareholders' equity 214,840,418,493 177,227,515,943 Cash generated from operating assets and liabilities (ii) 1,865,296,194 (7,873,345,130) Other expenses 38 1,243,949,218 993,227,681 Net cash from operating activities (i+ii) 10,486,735,845 (2,100,014,815) Total operating expenses (B) 6,317,908,425 5,891,953,237 Profit before provision (C = A-B) 6,768,662,445 4,866,221,599 OFF-BALANCE SHEET ITEMS B) Cash flows from investing activities Provision for loans and advances/investments 39 (2,148,269,292) (1,704,589,739) Provision for off-balance sheet exposures (21,000,000) - Contingent liabilities Proceeds from sale of securities 266,859,721 417,918,484 Other provision (37,600,229) (20,337,274) Acceptances and endorsements 13,190,254,052 11,057,333,323 Payment for purchase of securities (3,813,963,628) - Total provision (D) (2,206,869,521) (1,724,927,013) Purchase/sale of property, plant and equipment (903,499,249) (662,490,620) Total profit before tax (E = C+D) 4,561,792,924 3,141,294,586 Letters of guarantee 23.1 10,218,482,911 13,089,666,520 Provision for taxation (F) 40 Irrevocable letters of credit 23.2 13,817,709,300 9,569,305,671 Investment in subsidiaries - - Current tax expense (1,646,005,974) (1,585,366,117) Bills for collection 23.3 10,854,384,996 10,501,797,506 Net cash used in investing activities (4,450,603,156) (244,572,136) Deferred tax income / (expense) 677,355,387 150,182,944 Other contingent liabilities - - Total provision for tax (968,650,587) (1,435,183,173) C) Cash flows from financing activities Net profit after tax (G = E+F) 3,593,142,337 1,706,111,413 Total 48,080,831,259 44,218,103,020 Issuance of tier-II subordinated bond - 3,000,000,000 Net profit after tax attributable to: Other commitments Dividend paid (1,263,777,692) - Equity holders of the bank 3,593,116,965 1,708,703,707 Net cash from financing activities (1,263,777,692) 3,000,000,000 Non-controlling interest 25,372 (2,592,294) Documentary credits and short term trade-related transactions - - 3,593,142,337 1,706,111,413 Forward assets purchased and forward deposits placed 23.4 2,045,042,200 2,124,260,400 Appropriations Undrawn note issuance and revolving underwriting facilities - - D) Net increase in cash and cash equivalents (A+B+C) 4,772,354,997 655,413,049 Statutory reserve 898,922,614 719,202,007 Undrawn formal standby facilities, credit lines and other commitments - - General reserve - - E) Effects of exchange rate changes on cash and cash equivalents 777,207,899 653,884,558 898,922,614 719,202,007 Other commitments - - Retained surplus for the year 2,694,194,351 989,501,700 Total 2,045,042,200 2,124,260,400 Earnings per share (EPS) 45 4.10 1.95 Total Off-Balance Sheet items including contingent liabilities 50,125,873,459 46,342,363,420 F) Cash and cash equivalents at beginning of the year 28,886,236,894 27,576,939,287 The annexed notes 1 to 49 form an integral part of these financial statements. G) Cash and cash equivalents at end of the year (D+E+F) 34,435,799,790 28,886,236,894 The annexed notes 1 to 49 form an integral part of these financial statements. Cash and cash equivalents at end of the year consists of: Cash in hand (including foreign currencies) 3,028,046,419 2,504,456,546 ______Balance with Bangladesh Bank and its agent bank(s) 12,438,634,907 8,431,511,967 Managing Director & CEO Director Director Chairman ______(including foreign currencies) As per our report of same date. Managing Director & CEO Director Director Chairman Balance with other banks and financial institutions 15,619,846,135 4,973,824,343 As per our report of same date. Money at call and short notice 95,379,167 1,998,379,167 Government securities 3,253,893,162 10,978,064,871 ______34,435,799,790 28,886,236,894 Dhaka, April 28, 2016 Auditor Dhaka, April 28, 2016 Auditor The City Bank Limited Report and Financial Statements as at and for the year ended 31 December 2015

2.2 Basis of measurement Depreciation Notes to the Financial Statements as at and for the year ended 31 December 2015 The financial statements of the Group have been prepared on historical cost basis except for the following: Depreciation on fixed assets are recognised in the profit and loss statement on straight line method over its estimated -Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ are present at value using marking to market useful lives. In case of acquisition of fixed assets, depreciation is charged from the month of acquisition, whereas 1. Reporting entity concept with gain crediting to revaluation reserve. depreciation on disposed off fixed assets are charged up to the month prior to the disposal. Asset category wise -Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ are carried at amortised cost. depreciation rates for the current and comparative periods are as follows: 1.1 Status of the Bank -Investment in shares of listed companies are prepared at market value with gain credited to revaluation reserve. “The City Bank Limited (“”the Bank””) was incorporated as a public limited company in Bangladesh under The Companies Category of assets Rate of depreciation -Fixed assets (land and building) are carried at revalued amount. Act 1913. It commenced its banking business from 14 March 1983 under the license issued by Bangladesh Bank. The Bank Land Nil has 108 (2014: 100) branches, 11 (2014: 11) SME/Agri branches and 1 SME centre in Bangladesh as at 31 December 2015. 2.3 Functional and presentation currency Building Various* The Bank had no overseas branches as at 31 December 2015. Out of the above 108 branches, 1 branch is designated These financial statements are presented in Bangladesh Taka (Taka/Tk) which is the Bank’s functional currency. Except as Furniture and fixtures 10% as Islamic Banking Branch complying with the rules of Islamic Shariah, the modus operandi of which is substantially otherwise indicated, financial information presented in Taka has been rounded to the nearest integer. Office equipment and machinery 20% Software 5% different from other branches run on conventional basis. It has 276 (2014: 239) ATMs as at 31 December 2015. The Bank 2.4 Use of estimates and judgements Vehicles 20% is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company. The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results Depreciation methods, useful lives and residual values are reassessed at each reporting date and adjusted, if appropriate. The registered office of the Bank is located at 136, Bir Uttam Mir Shawkat Sarak (Gulshan Avenue), Gulshan-2, Dhaka-1212. may differ from these estimates. * For building, formerly 2.50% rate was used for calculating depreciation. Due to revaluation in the year 2014, the The consolidated financial statements of the Bank as at and for the year ended 31 December 2015 comprise the Bank and Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are remaining useful life of building has been changed and as a result appropriate depreciation rates have been used to its subsidiaries (collectively the ‘Group’ and individually ‘Group entities’). recognised in the periods in which the estimate is revised and in any future periods affected. calculate depreciation of each building considering the remaining useful life. 1.2 Principal activities of the Bank In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting 3.3.6 Non- banking assets Bank has recognised the Non-Banking Assets equivalent to the final liability receivable from the client. No reserve has The principal activities of the Bank are to provide a comprehensive range of including commercial policies that have the most significant effect on the amounts recognised in the financial statements are described below: banking, consumer banking, trade services, SME, retail, custody and clearing services to its customers. There have been no been created for excess of market value over adjusted liabilities. significant changes in the nature of the principal activities of the Bank during the financial period under audit. - Provisions on loans and advances - as explained in note 3.3.3 - Employee benefits - as explained in note 3.12.2 and 3.12.3 3.3.7 Provisions for other assets - Income tax - as explained in note 3.13 BRPD Circular No.14 (25 June 2001) requires a provision of 100% on other assets which are outstanding for one year 1.3 Islamic Banking and above. The Bank maintains provisions in line with this circular unless it assesses there is no doubt of recovery on The Bank obtained permission for Islamic Banking Branch from Bangladesh Bank vide letter no. BL/DA/6852/2003 dated 16 items of other assets in which case no provision is kept. July 2003. Through the Islamic Banking Branch the Bank extends all types of Islamic Shariah compliant finance like lease, 2.5 Reporting period These financial statements cover one calendar year from 1 January 2015 to 31 December 2015. hire purchase shirkatul melk (HPSM), bai muazzal, household scheme etc. and different types of deposits like mudaraba/ 3.3.8 Intangible assets and its amortisation manarah savings deposits, mudaraba/manarah term deposits, al-wadeeah current deposits, monthly/quarterly profit 2.6 Cash flow statement Intangible assets comprise separately identifiable intangible items arising from use of franchise of AMEX and the use of paying scheme etc. Separate financial statements of Islamic Banking Branch are shown in Annexures I(1) and I(2). The cash flow statement has been prepared in accordance with BAS 7 Cash Flow Statements considering the requirements Finacle from Infosys. Intangible assets are recognised at cost. Intangible assets with a definite useful life are amortised specified in BRPD circular No. 14 dated 25 June 2003 issued by the Banking Regulation and Policy Department of using the straight line method over its estimated useful economic life. 1.4 Off-Shore Banking Off-shore Banking Unit (OBU) is a separate business unit of the Bank, governed under the rules and guidelines of Bangladesh Bank. 3.3.9 Reconciliation of inter-bank and inter-branch account Account with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled regularly and there are no Bangladesh Bank. The Bank obtained the Off-shore Banking Unit permission vide letter No. BRPD(P-3)744(101)/2010-4129 2.7 Statement of changes in equity material differences which may affect the financial statements significantly. Un-reconciled entries/balances in the case The Statement of changes in equity reflects information about the increase or decrease in net assets or wealth. Statement dated 10 November 2009. OBU provides varied financial needs of 100% foreign owned/joint venture industrial units and of inter-branch transactions on the reporting date are not material. foreign entities located in Export Processing Zones of Bangladesh. Separate financial statements of Off-shore Banking Unit of changes in equity is prepared principally in accordance with BAS-1 “Presentation of Financial Statements” and under the are shown in Annexures J(1) and J(2). guidelines of Bangladesh Bank’s BRPD Circular No. 14 dated 25 June 2003. 3.4 Liabilities and basis of their valuation 1.5 The City Brokerage Limited 2.8 Liquidity statements 3.4.1 Tier-II Subordinated Bond The City Brokerage Limited (‘the Company’) was incorporated in Bangladesh as a private limited company on 31 March The liquidity statement of assets and liabilities as on the reporting date has been prepared on the following basis: Tier-II Subordinated bond includes fund raised from several banks and financial institutions through issuance of 6 (six) 2010 vide registration no. C-83616/10 under the Companies Act 1994. The legal status of the Company has been years Bond. These items are brought to financial statements at the gross value of the outstanding balance. Details are a) balance with other banks and financial institutions, money at call and short notice, etc. are on the basis of their converted into public limited company from private limited company in June 2012 in compliance with Bangladesh shown in note 13. maturity term. Securities and Exchange Commission Rules 2000. Previously the Bank launched its brokerage division on 4 August 2009 3.4.2 Borrowings from other banks, financial institutions and agents which was subsequently separated from the Bank on 15 November 2010. On 31 December 2015 the Bank held 99.9963% b) investments are on the basis of their respective maturity. Borrowings from other banks, financial institutions and agents includes refinance from Bangladesh Bank against agro- shares of the Company. c) loans and advances are on the basis of their repayment maturity. based credit, SME Loan etc., interest-bearing borrowings against securities from Bangladesh Bank and call borrowing d) fixed assets are on the basis of their useful lives. from other banks. These items are brought to financial statements at the gross value of the outstanding balance. Details The financial statements, audited by S.F. Ahmed & Co, Chartered Accountants, have been enclosed in Appendix A. e) other assets are on the basis of their realisation/amortisation. are shown in note 14. f) borrowing from other banks, financial institutions and agents, etc. are as per their maturity/repayments. 1.6 City Bank Capital Resources Limited g) deposits and other accounts are on the basis of their maturity term. 3.4.3 Deposits and other accounts City Bank Capital Resources Limited (CBCRL) was incorporated in Bangladesh as a private limited company on 17 August i) provision and other liability on the basis of their repayment/adjustments schedule. Deposits and other accounts include non interest-bearing current deposit redeemable at call, interest bearing on 2009 vide registration no. C-79186/09 under the Companies Act, 1994. The registered office of CBCRL is at 10 Dilkusha demand and short-term deposits, savings deposit and fixed deposit. These items are brought into financial statements Commercial Area, Jibon Bima Tower, Dhaka -1000. CBCRL delivers a whole range of investment banking services including Details are shown in Annexures A and A/1. are at the gross value of outstanding balance. Details are shown in note 15. merchant banking activities such as issue management, underwriting, portfolio management and corporate advisory. On 2.9 Financial Statements for Offshore Banking Unit (OBU) 3.4.4 Provision for liabilities 31 December 2015 the Bank held 99.9933% shares of CBCRL. Reporting currency of Offshore Banking Unit is US Dollar. However, foreign currency transactions are converted into A provision is recognised in the balance sheet when the Group has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligations in The financial statements, audited by S.F. Ahmed & Co, Chartered Accountants, have been enclosed in Appendix B. equivalent Taka using the ruling exchange rates on the dates of respective transactions as per BAS 21 ‘The Effects of changes in Foreign Exchange Rates’. Foreign currency balances held in US Dollar are converted into Taka at weighted accordance with BAS 37 “Provisions, Contingent Liabilities and Contingent Assets”. 1.7 CBL Money Transfer Sdn. Bhd. average rate of Inter Bank market as determined by Bangladesh Bank on the closing date of the reporting period. 3.4.5 Provision for Off-balance sheet exposure CBL Money Transfer Sdn. Bhd. (CMTS) is a private limited company by shares incorporated under the laws of Malaysia BRPD Circular No.14 (23 September 2012) requires a general provision for off-balance sheet exposures to be calculated and registered with the Companies Commission of Malaysia with Registration No. 769212M carrying on money services 3. Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated at 1% on all off-balance sheet exposures as defined in BRPD Circular No.10 (24 November 2002). Accordingly the Bank business under the Money Services Business Act 2011 under a Class B License No. 00127 from the Bank Negara Malaysia. has recognised a provision of 1% on the following off-balance sheet items: financial statements of the Group and those of the Bank have been applied consistently by the group entities. CMTS is principally engaged as inbound and outbound remittance service provider. -Acceptance and endorsements 3.1 Basis of consolidation The consolidated financial statements include the financial statements of The City Bank Limited and those of its three -Letters of guarantee The Bank entered into an agreement on 4 April 2013 to purchase 75% of ordinary shares of CMTS with an agreement to -Irrevocable letters of credit subsidiaries (City Brokerage Limited, City Bank Capital Resources Limited and CBL Money Transfer Sdn. Bhd.) prepared as acquire 100% shares of CMTS ultimately and the company became and started as subsidiary of the Bank since 5 August -Foreign exchange contracts 2013. On 31 December 2015 the Bank held 87.20% shares of CMTS. at and for the year ended 31 December 2015. The consolidated financial statements have been prepared in accordance with BFRS 10 ‘Consolidated Financial Statements’. 3.4.6 Provisions on balances with other banks and financial institutions (Nostro accounts) The financial statements, audited by Nasharuddin Wong & Co, Chartered Accountants, have been enclosed in Appendix C. Provisions for unsettled transactions on nostro accounts made are reviewed semi-annually by management and 3.1.1 Subsidiaries certified by our external auditors in accordance with Bangladesh Bank Foreign Exchange Policy Department (FEPD) 2. Basis of preparation Subsidiaries are the entities controlled by the Group. The financial statements of subsidiaries are included in the Circular No. 677 (13 September 2005). consolidated financial statements from the date that control commences until the date that control ceases. 2.1 Statement of compliance 3.4.7 Other liabilities The consolidated financial statements of the Group and financial statements of the Bank as at and for the year ended 3.1.2 Non-controlling interest Other liabilities comprise items such as provision for loans and advances/investments, provision for taxation, interest 31 December 2015 have been prepared in accordance with Bangladesh Financial Reporting Standards (BFRS) and the The Group elects to measure any non-controlling interests in the subsidiaries either: payable, interest suspense, accrued expenses, obligation under finance lease etc. Other liabilities are recognised in the requirements of the Bank Company Act 1991, the rules and regulations issued by Bangladesh Bank, the Companies Act at fair value; or balance sheet according to the guidelines of Bangladesh Bank, Income Tax Ordinance, 1984 and internal policy of the Bank. at their proportionate share of the acquirees identifiable net assets, which are generally at fair value. 1994, the Securities and Exchange Rules 1987. In case any requirement of the Bank Company Act 1991, and provisions 3.5 Capital/Shareholders' equity and circulars issued by Bangladesh Bank differ with those of BFRS, the requirements of the Bank Company Act 1991, and 3.1.3 Transactions eliminated on consolidation provisions and circulars issued by Bangladesh Bank shall prevail. Material departures from the requirements of BFRS are Intra-group balances and income and expenses (except for foreign currency translation gains or losses) arising from intra- 3.5.1 Authorised capital as follows: group transactions are eliminated in preparing these consolidated financial statements. Unrealised losses are eliminated Authorised capital is the maximum amount of share capital that the Bank is authorised by its Memorandum and Articles of Association. i) Investment in shares and securities in the same way as unrealised gains but only to the extent that there is no evidence of impairment. 3.5.2 Paid up capital 3.2 Foreign currency transactions Paid up capital represents total amount of shareholders’ capital that has been paid in full by the ordinary shareholders. BFRS: As per requirements of BAS 39 investment in shares and securities generally falls either under “at fair value through Transactions in foreign currencies are translated into the respective functional currency of the operation at the spot Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote profit and loss account” or under “available for sale” where any change in the fair value at the reporting date is taken to exchange rate at the date of the transaction. profit and loss account or revaluation reserve respectively. at shareholders’ meetings. In the event of a winding-up of the Bank, ordinary shareholders rank after all other Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional shareholders and creditors and are fully entitled to any residual proceeds of liquidation. Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and unquoted shares are currency at the spot exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies 3.5.3 Share premium revalued at the reporting date at market price and as per book value of last audited balance sheet respectively. Provision that are measured at fair value are retranslated into the functional currency at the spot exchange rate at the date that the Share premium is the capital that the Bank raises upon issuing shares for a price in excess of the nominal value of should be made for any loss arising from diminution in value of investment on portfolio basis. fair value was determined. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign shares. The share premium shall be utilised in accordance with provision of section 57 of the Companies Act, 1994 and ii) Revaluation gain/loss on government securities currency are translated using the exchange rate at the date of the transaction. as directed by Securities and Exchange Commission in this respect. Foreign currency differences arising on translation are recognised in the profit and loss statement. 3.5.4 Statutory reserve BFRS: As per requirement of BAS 39 where securities will fall under the category of Held for Trading (HFT), any change Statutory reserve has been maintained at the rate of 20% of profit before tax in accordance with provisions of section in the fair value of held for trading assets is recognised through profit and loss account. Securities designated as Held to 3.3 Assets and basis of their valuation 24 of the Bank Company Act, 1991. Such transfer shall continue until the reserve balance equals its paid up capital Maturity (HTM) are measured at amortised cost method and interest income is recognised through the profit and loss together with the share premium. account. 3.3.1 Cash and cash equivalents Cash and cash equivalents include notes and coins on hand, balances held with Bangladesh Bank and its agent bank, 3.5.5 Revaluation reserve for government securities Revaluation reserve for government securities arises from the revaluation of treasury bills, Bangladesh Bank bills Bangladesh Bank: HFT securities are revalued on the basis of mark to market and any gains on revaluation of securities balance with other banks and financial institutions, money at call and short notice, investments in treasury bills, and treasury bonds (HFT and HTM) in accordance with the DOS Circular no. 5 dated 26 May 2008 and DOS(SR) which have not matured as at the balance sheet date are recognised in other reserves as a part of equity and any losses on Bangladesh Bank bill and prize bonds. revaluation of securities which have not matured as at the balance sheet date are charged in the profit and loss account. 1153/120/2010 dated 8 December 2010. Interest on HFT securities including amortisation of discount is recognised in the profit and loss account. HTM securities 3.3.2 Investments 3.5.6 Revaluation reserve for fixed assets All investments are initially recognised at cost including acquisition charges associated with the investment. Premiums are which have not matured as at the balance sheet date are amortised and gains or losses on amortisation are recognised in Revaluation reserve for fixed assets arises from the revaluation of any class of fixed assets when the market price of amortised and discount accredited using the effective or historical yield method. Accounting treatment of government other reserve as a part of equity. the assets increased significantly from the carrying value. When an asset’s carrying amount is increased as a result of treasury bills and bonds (categorised as HFT and HTM) are made in accordance with Bangladesh Bank DOS Circular letter revaluation, the increased amount is recognised directly to equity under the heading of revaluation surplus/reserve iii) Provision on loans and advances no. 5, dated 26 May 2008 and DOS Circular letter no. 05 dated 28 January 2009. as per BAS 16 “Property, Plant and Equipment”. The Bank revalued its land and buildings during the year 2014 and accordingly created an asset revaluation reserve. BFRS: As per BAS 39 an entity should start the impairment assessment by considering whether objective evidence Held to Maturity of impairment exists for financial assets that are individually significant. For financial assets that are not individually Investments which have ‘fixed or determinable payments’ and are intended to be held to maturity are classified as ‘Held 3.5.7 Capital management significant, the assessment can be performed on an individual or collective (portfolio) basis. to Maturity’. These are measured at amortised cost at each year end by taking into account any discount or premium in acquisition. Any increase or decrease in value of such investments are booked under equity and in the profit and loss The Bank has a capital management process in place to measure, deploy and monitor its available capital and assess its statement respectively. adequacy. This capital management process aims to achieve the following objectives: Bangladesh Bank: As per BRPD circular no.14 (23 September 2012), BRPD circular no. 19 (27 December 2012), BRPD To comply with the capital requirements set by the regulators; circular no. 05 (29 May 2013) and BRPD circular no. 16 (18 November 2014) a general provision at 0.25% to 5% under Held for Trading different categories of unclassified loans (good/standard loans) has to be maintained regardless of objective evidence Investments classified in this category are acquired principally for the purpose of selling or repurchasing in short trading To safeguard the Bank’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; of impairment. Also provision for sub-standard loans, doubtful loans and bad losses has to be provided at 5% to 20%, or if designated as such by the management. After initial recognition, investments are measured at fair value and any 5% to 50% and 100% respectively for loans and advances depending on the duration of overdue. Again as per BRPD change in the fair value is recognised in the profit and loss statement and revaluation reserve as per Bangladesh Bank’s To maintain a strong capital base to support the development of its business. guideline. circular no. 10 dated 18 September 2007 and BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is Capital is managed in accordance with the Board approved Capital Management Planning. Senior management required to be provided for all off-balance sheet exposures. Such provision policies are not specifically in line with those Investment in quoted shares develops the capital strategy and oversee the capital management planning of the Bank. The Bank’s finance, treasury prescribed by BAS 39. These securities are bought and held primarily for the purpose of selling them in future or held for dividend income. and risk management departments are key participators in implementing the Bank’s capital strategy and managing These are valued and reported at market price as per Bangladesh Bank’s guidelines. Booking of provision for investment iv) Recognition of interest in suspense capital. Capital is managed using both regulatory capital measures and internal matrix. in securities (gain/loss net off basis) are made as per DOS Circular no.4 dated 14 November 2011. 3.6 Contingent liabilities BFRS: Loans and advances to customers are generally classified as ‘loans and receivables’ as per BAS 39 and interest Investment in unquoted shares A contingent liability is: income is recognised through effective interest rate method over the term of the loan. Once a loan is impaired, interest Investment in unquoted shares are recognised at cost under cost method. Adjustment is given for any shortage of book income is not recognised in the financial statements. value over cost for determining the carrying amount of investment in unquoted shares. A possible obligation that arises form past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on such loans Value of investments has been shown as under: A present obligation that arises from past events but is not recognised because: are not allowed to be recognised as income, rather the corresponding amount needs to be credited to an interest in - Government Treasury Bills and Bonds (HFT) and At present value (using marking to market concept) suspense account, which is presented as liability in the balance sheet. - it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or Bangladesh Bank bill v) Other comprehensive income - the amount of the obligation cannot be measured with sufficient reliability. BFRS: As per BAS 1 Other Comprehensive Income is a component of financial statements or the elements of Other - Government Treasury Bills and Bonds (HTM) and At present value (using amortised cost concept) Comprehensive Income are to be included in a Single Comprehensive Income (OCI) Statement. Bangladesh Bank bill Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility of an outflow of resources embodying economic benefits is reliably estimated. Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which are required to be followed by - Prize Bond At cost - BHBFC-debenture At redeemable value all banks. The templates of financial statements issued by Bangladesh Bank do not include Other Comprehensive Income - Unquoted shares At cost or book value as per last audited balance sheet, Contingent assets are not recognised in the financial statements as this may results in the recognition of income which nor are the elements of Other Comprehensive Income allowed to be included in a Single Comprehensive Income (OCI) whichever is lower may never be realised. Statement. As such the company does not prepare the other comprehensive income statement. However elements of OCI, - Quoted shares At market price 3.7 Revenue recognition if any, are shown in the statements of changes in equity. 3.3.3 Loans and advances/investments and provisions for loans and advances/investments vi) Financial instruments – presentation and disclosure a) Loans and advances of conventional banking/investments of Islamic banking branches are non-derivative financial 3.7.1 Interest income In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently assets with fixed or determinable payments that are not quoted in an active market and that the Bank does not sell Interest on loans and advances is calculated on daily product basis and accrued at the end of each month, but charged to customers’ accounts on quarterly basis. from those prescribed in BAS 39. As such some disclosure and presentation requirements of BFRS 7 and BAS 32 cannot be in the normal course of business. made in the financial statements. b) At each balance sheet date and periodically throughout the year, the Bank reviews loans and advances/investments In accordance with BRPD Circular No.14 (23 September 2012) as amended by BRPD Circular No. 19 (27 December 2012) to assess whether objective evidence that impairment of a loan or portfolio of loans has arisen supporting a change interest accrued on sub-standard loans and doubtful loans are credited to an “Interest Suspense Account” which is vii) Repo transactions included within “Other liabilities”. Interest from loans and advances ceases to be accrued when they are classified as bad/ BFRS: When an entity sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or in the classification of loans and advances, which may result in a change in the provision required in accordance with loss. It is then kept in interest suspense in a memorandum account. a similar asset) at a fixed price on a future date (REPO or stock lending), the arrangement is accounted for as a deposit BRPD Circular No.14 (23 September 2012), BRPD Circular No. 19 (27 December 2012), BRPD Circular No. 05 (29 May as opposed to a sale, and the underlying asset continues to be recognised in the entity’s financial statements. Such 2013) and BRPD Circular No. 16 (18 November 2014). The guidance in the circulars follows a formula based approach 3.7.2 Profit on investment (Islamic Banking) whereby specified rates are applied to the various categories of loans as defined in the circular. The provisioning transactions do not satisfy the derecognition criteria specified in BAS 39. Such transactions will be treated as loan and Mark-up on investment is taken into income account proportionately from profit receivable account. Overdue charge/ rates are as follows: the difference between selling price and repurchase price will be treated as interest expense. Same rule applies to the compensation on classified investments are transferred to profit suspense account instead of income account. opposite side of the transaction (Reverse REPO). Particulars Rate 3.7.3 Investment income Income on investments are recognised on accrual basis. Investment income includes discount on treasury bills and Bangladesh Bank: As per Bangladesh Bank circulars/guidelines, when a bank sells a financial asset and simultaneously General provision on Unclassified loans (Standard and SMA): Bangladesh Bank bills, interest on treasury bonds and fixed deposit with other banks. Capital gain on investments in enters into an agreement to repurchase the asset (or a similar asset) at a fixed price on a future date (REPO or stock Unclassified small and medium enterprise financing 0.25% shares are also included in investment income. Capital gain is recognised when it is realised. lending), the arrangement is accounted for as a normal sales transactions and the financial assets are derecognised in the Unclassified loans/investments for housing finance and on loans for professionals 2% Unclassified agricultural and micro-credit loans 2.5% seller’s book and recognised in the buyer’s book. 3.7.4 Fees and commission income Unclassified consumer financing other than housing finance and loans for professionals 5% The Bank earns commission and fee income from a diverse range of service provided to its customers. Commission and viii) Financial guarantees Unclassified loans to brokerage house, merchant banks, stock dealers etc. 2% fee income is accounted for as follows: BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make specified payments to reimburse All other unclassified loans and advances/investments 1% the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms -income earned on the execution of a significant act is recognised as revenue when the act is completed Specific provision on: -income earned from services provided is recognised as revenue as the services are provided of a debt instrument. Financial guarantee liabilities are recognised initially at their fair value, and the initial fair value is Sub-standard loans and advances/investments 20% -Commission charged to customers on letters of credit and letters of guarantee are credited to income at the time of amortised over the life of the financial guarantee. The financial guarantee liability is subsequently carried at the higher of Doubtful loans and advances/investments 50% effecting the transactions. this amortised amount and the present value of any expected payment when a payment under the guarantee has become Bad / loss and advances/investments 100% probable. Financial guarantees are included within other liabilities. 3.8 Interest paid on borrowing and other deposits (Conventional banking) BRPD Circular No.14 (23 September 2012) as amended by BRPD Circular No. 19 (27 December 2012) also provides Interest paid and other expenses are recognised on accrual basis. Bangladesh Bank: As per BRPD 14, financial guarantees such as L/C, L/G will be treated as Off-Balance Sheet items. No scope for further provisioning based on qualitative judgments. In these circumstances impairment losses are liability is recognised for the guarantee except the cash margin. calculated on individual loans considered individually significant based on which specific provisions are raised. If 3.9 Profit shared on deposits (Islamic banking) the specific provisions assessed under the qualitative methodology are higher than the specific provisions assessed Profit shared to mudaraba deposits are recognised on accrual basis. ix) Cash and cash equivalent under the formulaic approach above, the higher of the two is recognised in liabilities under “Provision for loans and 3.10 Dividends BFRS: As per BAS 7 cash and cash equivalents are short-term, highly liquid investments that are readily convertible to advances” with any movement in the provision charged/released in the profit and loss account. Classified loans are known amounts of cash and which are subject to insignificant risk of changes in value. Therefore, some items like Balance Dividend income is recognised when the right to receive income is established. Dividends are presented under categorised into sub-standard, doubtful and bad/loss based on the criteria stipulated by Bangladesh Bank guideline. investment income. with Bangladesh Bank on account of CRR/SLR are not part of cash and cash equivalent as those are not readily available. Provisions for short term agricultural and micro-credits 3.11 Lease payments Bangladesh Bank: As per Bangladesh Bank circulars/guidelines, balance with Bangladesh Bank is part of cash and cash Sub-standard & Doubtful 5% Payments made under operating leases are recognised in the profit and loss statement on a straight-line basis over the Bad/Loss 100% equivalent regardless of any restriction. Furthermore, some cash and cash equivalent items such as ‘money at call and on terms of the lease. short notice’, Treasury bills, Prize bond are not presented as cash and cash equivalent. Instead money at call and on short c) Loans and advances are written off to the extent that notice is presented as a face item in balance sheet, and Treasury bills, Prize bonds are presented as investment. Lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant i)there is no realistic prospect of recovery, and x) Non-banking asset periodic rate of interest on the remaining balance of the liability. BFRS: No indication of Non-banking asset is found in any BFRS. ii) against which legal cases are filed, where required and classified as bad/loss as per guidelines of Bangladesh Bank. 3.12 Employee benefits Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset. These write off however will not undermine/affect the claim amount against the borrower. Detailed memorandum records for all such written off accounts are maintained and followed up. 3.12.1 Provident Fund Provident Fund benefits are given to the permanent staff of the Bank in accordance with the registered Provident Fund xi) Cash flow statement d) Amounts receivable on credit cards are included in advances to customers at the amounts expected to be recovered. BFRS: Cash flow statement can be prepared either in direct method or in indirect method. The presentation is selected rules. The Commissioner of Income Tax, Taxes Zone - 4, Dhaka, has approved the Provident Fund as a recognised fund to present these cash flows in a manner that is most appropriate for the business or industry. The method selected is within the meaning of section 2(52) read with the provisions of part - B of the First Schedule of Income Tax Ordinance applied consistently. 3.3.4 Staff loan 1984. The reorganisation took effect on 31 October 1987. The Provident Fund is operated by a Board of Trustees House building and car loan are provided to the permanent staff at a subsidised rate. Criteria and detail of type wise consisting of 6 members of the Bank. All confirmed employees of the Bank are contributing 10% of their basic salary Bangladesh Bank: As per BRPD 14, cash flow is the mixture of direct and indirect method. staff loan are given below: as subscription to the Provident Fund. The Bank also contributes equal amount to the Provident Fund. Contributions made by the Bank are charged as expense and the Bank bears no further liability. Interest earned from the investments House building loan: A permanent staff completing 5 years of service can avail house building loan subject to getting xii) Balance with Bangladesh Bank: (CRR) is credited to the members’ account on yearly basis. Members are eligible to get both the contribution after 5 years of BFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations approval from Managing Director, CEO and recommended by the concerned divisional head. continuous service from the date of their membership. as per BAS 7. Car loan: All permanent staff from AVP can avail car loan subject to getting approval from Managing Director, CEO and 3.12.2 Gratuity Fund Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents. recommended by the concerned divisional head. Gratuity Fund benefits are given to the staff of the Bank in accordance with the approved Gratuity Fund rules. National Board of Revenue has approved the Gratuity Fund as a recognised gratuity fund with effect from 3 June 2012. The xiii) Presentation of intangible asset 3.3.5 Fixed assets (property, plant and equipment) BFRS: Intangible asset must be identified and recognised, and the disclosure must be given as per BAS 38. Gratuity Fund is operated by a Board of Trustee consists of 7 members of the Bank. Employees are entitled to get gratuity Recognition and measurement benefit after completion of minimum 5 years of service in the Bank. Provision for gratuity is made annually covering all its Bangladesh Bank: There is no requirement for regulation of intangible assets in BRPD 14. Items of fixed assets excluding land are measured at cost less accumulated depreciation and accumulated impairment permanent eligible employees. A valuation of gratuity scheme had been made in 2014 by a professional Actuarial & Pension losses, if any. Land and building are carried at revalued amounts. Consultants, Z. Halim & Associates considering the changes in Labour Act 2013 (Amendment) to assess the adequacy of the xiv) Off-balance sheet items liabilities provided for the scheme as per BAS 19 ‘Employee Benefits’. On continuing fund basis valuation, the Bank has been BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement for disclosure of off- Cost includes expenditure that are directly attributable to the acquisition of asset and bringing to the location and condition necessary for it to be capable of operating in the intended manner. maintaining adequate provision against gratuity scheme. balance sheet items on the face of the balance sheet. When parts of an item of fixed asset have different useful lives, they are accounted for as separate items (major 3.12.3 Other employee benefits Bangladesh Bank: As per BRPD 14, off-balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must be Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service components) of fixed assets. disclosed separately on the face of the balance sheet. is provided. A liability is recognised for the amount expected to be paid under short term cash bonus or profit-sharing The gain or loss on disposal of an item of fixed asset is determined by comparing the proceeds from disposal with the plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by xv) Disclosure of appropriation of profit carrying amount of the item of fixed asset, and is recognised in other income/other expenses in profit or loss. the employee and the obligation can be estimated reliably. The Bank has following short term employee benefit schemes: BFRS: There is no requirement to show appropriation of profit in the face of statement of comprehensive income. Subsequent costs Hospitalisation insurance Bangladesh Bank: As per BRPD 14, an appropriation of profit should be disclosed in the face of profit and loss account. The cost of replacing a component of an item of fixed asset is recognised in the carrying amount of the item if it The Bank has a health insurance scheme to its confirmed employees and their respective dependants at rates provided is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be in health insurance coverage policy. xvi) Loans and advance net of provision measured reliably. The carrying amount of the replaced parts is derecognised. The costs of the day to day servicing of BFRS: Loans and advances should be presented net of provisions. Life insurance fixed assets are recognised in the profit and loss statement as incurred. The Bank has a group life insurance scheme to its confirmed employees and the benefit of the scheme is available to Bangladesh Bank: As per BRPD 14, provision on loans and advances are presented separately as liability and cannot be the family of the employee on the occurrence of natural death of the employee during the tenure of his/her service. netted off against loans and advances. (Also refer to note 3.16 for Compliance of BFRSs) The City Bank Limited Report and Financial Statements as at and for the year ended 31 December 2015

4 Consolidated cash in hand 5.a.3 Maturity grouping of balance with other banks and financial institutions Notes to the Financial Statements as at and for the year ended 31 December 2015 2015 2014 2015 2014 Performance bonus Provision of Workers’ Profit Participation Fund and Welfare Fund mentioned in Bangladesh Labour (Amendments) Act, Taka Taka Taka Taka 2013 contradicts Bank Company Act, 1991 through which Bank Companies are regulated. Section-11 of Bank Company The City Bank Limited (note 4.a) 3,028,046,419 2,504,456,546 Payable on demand 125,314,396 406,813,534 Act, 1991 restricts to employ anyone who receives remuneration or part of remuneration as share of profit of the City Brokerage Limited 77,500 77,500 Up to 1 month 4,041,807,515 1,417,023,844 company and remuneration includes salary and other benefit. Accordingly, we obtained a legal opinion from Nurul Over 1 month but not more than 3 months 10,354,379,163 2,004,930,159 Alam & Associates, Advocates and Consultants, wherein it is opined that Worker’s Profit Participation and Welfare Fund City Bank Capital Resources Limited 11,097 22,754 shall not be applicable for Bank Companies, as there is no non-obstante clause. Unless Government of Peoples Republic CBL Money Transfer Sdn. Bhd. 936,632 - Over 3 months but not more than 1 year 1,098,345,061 1,145,056,806 Over 1 year but not more than 5 years - - of Bangladesh amends section 11 of Bank Company Act or frames rules, giving overriding effect to Bank Company Act, 3,029,071,648 2,504,556,800 1991, section 232 of Bangladesh Labour (Amendments) Act, 2013 will not be applicable for banks. Adjustments for Consolidation - City Brokerage Limited - (6,660,323) Over 5 years - - Moreover, in the Bank, performance bonus provision is there, which is distributed among the employees on the basis Adjustments for Consolidation - City Bank Capital Resources Limited - (853,370) 15,619,846,135 4,973,824,343 of individual employee’s yearly performance with a view to recognise welfare of the employees and reward their Adjustments for Consolidation - The City Bank Limited (30,089,223) - participation and contribution to the company. 6. Money at call and short notice 2,998,982,425 2,497,043,107 3.13 Tax expense Banking companies Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in the profit and loss 4.a Cash in hand - The City Bank Limited ICB Islamic Bank Limited (note 6.1) 95,379,167 98,379,167 statement except to the extent that it relates to items recognised directly in equity. National Bank of Pakistan - 150,000,000 3.13.1 Current tax Local currency 2,954,191,772 2,278,163,365 95,379,167 248,379,167 Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted Foreign currency 73,854,647 226,293,181 or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Details Non-banking financial institutions are shown in note 16.a.6. 3,028,046,419 2,504,456,546 International Leasing and Financial Services Limited - 30,000,000 3.13.2 Deferred tax 4.a.1 Balance with Bangladesh Bank and its agent bank(s) Lanka Bangla Finance Limited - 180,000,000 Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities Prime Finance and Investment Limited - 50,000,000 for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: Local currency 11,409,598,546 7,771,615,024 Investment Corporation of Bangladesh - 400,000,000 Foreign currency 380,623,706 211,995,189 Union Capital Limited - 50,000,000 temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination Delta Brac Housing Finance Corporation Limited - 50,000,000 and that affects neither accounting nor taxable profit or loss; 11,790,222,252 7,983,610,213 Bangladesh Industrial Finance Company Limited - 130,000,000 temporary differences related to investments in subsidiaries to the extent that it is probable that they will not reverse Limited as agent of Bangladesh Bank (local currency) 648,412,655 447,901,754 Industrial Promotion and Development Company of Bangladesh Limited - 170,000,000 in the foreseeable future; and MIDAS Financing Limited - 50,000,000 12,438,634,907 8,431,511,967 temporary differences arising on the initial recognition of goodwill. Phoenix Finance & Investments Limited - 40,000,000 United Finance Limited - 350,000,000 Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. 4.a.2 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) Fareast Finance & Investment Limited - 150,000,000 People's Leasing and Financial Services Ltd. - 100,000,000 Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities against Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained in accordance - 1,750,000,000 current tax assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on with section 33 of Banking Companies Act, 1991, BRPD circular no.11 and 12, dated 25 August 2005, MPD circular 95,379,167 1,998,379,167 different tax entities but they intend to settle current tax liabilities and assets on a net basis or their tax assets and no.116/2010-1713 dated 1 December 2010 and MPD Circular No. 1 dated 23 June 2014. liabilities will be realised simultaneously. The minimum Cash Reserve Ratio on the Bank's time and demand liabilities at the rate of 6.5% on bi-weekly basis has 6.1 This represents a call loan with ICB Islamic Bank Limited, formerly The Oriental Bank Limited, since 2007. Bangladesh A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent been calculated and maintained with Bangladesh Bank in current account and 13% Statutory Liquidity Ratio, excluding Bank has issued a notification dated 2 August 2007- BRPD(R-1)651/991002007-447 and approved a scheme of that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reconstruction of the former The Oriental Bank Limited in which payment of liabilities of the bank has been finalised reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit CRR, on the same liabilities has also been maintained in the form of treasury bills, bonds and debentures including will be realised. foreign currency balances with Bangladesh Bank (CRR and SLR of December 2015 is based on weekly average time and based on the schedule of payment the Bank (CBL) has already received first 15 instalments. and demand liabilities balance of October 2015). Both reserves maintained by the Bank are in excess of the statutory 3.13.3 Tax exposures requirements, as shown below: 7. Consolidated Investments In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the a) Cash Reserve Ratio (CRR) Government securities Bank to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact Required reserve 9,331,738,510 7,485,294,201 The City Bank Limited (note 7.a.ii.a) 19,691,517,972 23,630,557,854 tax expense in the period that such a determination is made. Actual reserve maintained 11,429,132,214 7,861,549,787 City Bank Capital Resources Limited (note 7.c) - 107,259,700 3.14 Impairment of non-financial assets Surplus 2,097,393,704 376,255,586 19,691,517,972 23,737,817,554 The carrying amounts of the Group’s and the Bank’s non-financial assets, other than deferred tax assets, are reviewed at Others each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the b) Statutory Liquidity Ratio (SLR) The City Bank Limited (note 7.a.ii.b) 4,923,298,995 5,079,174,206 asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its Cash Required reserve 18,472,064,945 14,838,000,512 City Brokerage Limited (note 7.b) 1,046,061,583 1,314,596,534 Generating Unit (CGU) exceeds its estimated recoverable amount. 25,451,537,275 26,420,265,933 Actual reserve maintained (note 4.a.3) City Bank Capital Resources Limited (note 7.c) 356,084,378 295,793,521 The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing Surplus 6,979,472,330 11,582,265,421 6,325,444,956 6,689,564,261 value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that 26,016,962,928 30,427,381,815 reflects current market assessments of the time value of money and the risks specific to the asset or CGU. 4.a.3 Held for Statutory Liquidity Ratio (SLR) Cash in hand 3,028,046,419 2,504,456,546 For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest 7.a Investments - The City Bank Limited group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of Sonali Bank Limited as agent of Bangladesh Bank as per statement balance 634,579,180 464,394,000 other assets or CGU. Surplus of CRR - balance with Bangladesh Bank 2,097,393,704 376,255,586 Government securities and bonds 19,691,517,972 23,075,159,801 i) Investment classified as per Bangladesh Bank Circular Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs) and then to reduce the carrying 25,451,537,275 26,420,265,933 Held for Trading (HFT) 3,469,355,664 9,602,627,140 amount of the other assets in the CGU (group of CGUs) on a pro rata basis. 5 Consolidated balance with other banks and financial institutions Held to Maturity (HTM) 16,043,472,855 12,245,852,510 Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss Reverse Repo 178,689,453 1,782,078,204 has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to In Bangladesh Other Securities 4,923,298,995 5,079,174,206 determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount The City Bank Limited (note 5.a) 15,355,924,462 3,480,471,770 24,614,816,967 28,709,732,060 does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no City Brokerage Limited 422,936,970 535,967,625 impairment loss had been recognised. Disclosure relating to REPO & Reverse REPO is presented in Annexure - G City Bank Capital Resources Limited 250,601,396 252,983,305 3.15 Earnings per share 16,029,462,828 4,269,422,700 The Group and the Bank present basic and diluted Earnings Per Share (EPS) data for its ordinary shares. Basic EPS is ii) Investment securities are classified as follows calculated by dividing the profit or loss attributable to ordinary shareholders of the Bank by the weighted average Mutual indebtedness: Deposit with The City Bank Limited - City Brokerage Limited (345,250,247) (503,074,775) number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss a) Government bonds attributable to the ordinary shareholders and the weighted average number of ordinary shares outstanding for the Deposit with The City Bank Limited - CBL Money Transfer Sdn. Bhd. (1,127,621) - effects of all dilutive potential ordinary shares, which comprise share options granted to employees. Deposit with The City Bank Limited - City Bank Capital Resources Limited (180,556,137) (136,003,305) Prize bonds 7,308,600 7,448,600 No diluted earnings per share is required to be calculated for the period. (526,934,005) (639,078,080) Government bonds - (note 7.a.2) 19,684,209,372 23,623,109,254 Adjustments for Consolidation - City Brokerage Limited - 2,076,309 3.16 Compliance of Bangladesh Financial Reporting Standard (BFRS) 19,691,517,972 23,630,557,854 The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of International Total in Bangladesh 15,502,528,823 3,632,420,929 b) Other investments Accounting Standards (IAS) as Bangladesh Accounting Standards (BAS) and International Financial Reporting Standards (IFRS) as Bangladesh Financial Reporting Standards (BFRS). While preparing the financial statements, the Bank applied Outside Bangladesh most of BAS and BFRS as adopted by ICAB. Details are given below: The City Bank Limited (note 5.a) 263,921,673 1,493,352,573 Debenture of Bangladesh Welding Electrodes Limited 122,273 122,273 CBL Money Transfer Sdn. Bhd. 149,524,762 65,688,444 Orascom bond - - Name of the standards BFRS/BAS Ref. Implementation status by the Bank Total outside Bangladesh 413,446,435 1,559,041,017 Mutual fund 40,937,893 38,610,438 First-time Adoption of Bangladesh Financial Reporting Standards BFRS-1 Not applicable Grand total 15,915,975,258 5,191,461,946 Shares (note 7.a.3) 4,882,238,829 5,040,441,495 Share-based Payment BFRS-2 Not applicable 4,923,298,995 5,079,174,206 5.a Balance with other banks and financial institutions - The City Bank Limited Business Combinations BFRS-3 Applied 24,614,816,967 28,709,732,060 Insurance Contracts BFRS-4 Not applicable In Bangladesh (note 5.a.1) 15,355,924,462 3,480,471,770 Non-current Assets Held for Sale and Discontinued Operations BFRS-5 Not applicable Outside Bangladesh (note 5.a.2) 263,921,673 1,493,352,573 7.a.1 Maturity grouping of investments Exploration for and Evaluation of Mineral Resources BFRS-6 Not applicable 15,619,846,135 4,973,824,343 Financial Instruments: Disclosures BFRS-7 Applied with some departure (note 2.1) 5.a.1 In Bangladesh On demand 7,308,600 7,448,600 Operating Segments BFRS-8 Applied with some departure (note 3.18) Over 1 month but not more than 3 months 178,689,453 2,259,890,801 Consolidated Financial Statements BFRS-10 Applied Current accounts Over 3 months but not more than 1 year 5,222,590,034 1,797,420,318 Joint Arrangements BFRS-11 Not applicable Limited 906,160 977,735 Over 1 year but not more than 5 years 5,814,810,456 10,817,332,105 Disclosure of Interest in Other Entities BFRS-12 Applied Limited 92,903,844 53,103,949 Over 5 years 13,391,418,424 13,827,640,236 Fair Value Measurement BFRS-13 Applied with some departure (note 2.1) United Commercial Bank Limited 3,180 4,330 24,614,816,967 28,709,732,060 Presentation of Financial Statements BAS-1 Applied with some departure (note 2.1) Limited 317,097 318,597 Inventories BAS-2 Not Applicable Islami Bank Bangladesh Limited 612 900 7.a.2 Government bonds Statement of Cash Flows BAS-7 Applied with some departure (note 2.1) 616 1,766 Accounting Policies, Changes in Accounting Estimates and Errors BAS-8 Applied Sonali Bank Limited 161,540,561 91,941,811 Name of the bonds Events after the Reporting Period BAS-10 Applied Sub total 255,672,070 146,349,088 Construction Contracts BAS-11 Not Applicable Short notice deposit accounts 30 days Bangladesh Bank bills - - Income Taxes BAS-12 Applied Social Islami Bank Limited - 3,615,480 91 days Treasury bills - 1,986,630,394 Property, Plant and Equipment BAS-16 Applied Dutch-Bangla Bank Limited 29,885 - 182 days Treasury bills - 285,408,822 Leases BAS-17 Applied Bank 32,515,611 66,850,343 364 days Treasury bills - 434,010,780 Revenue BAS-18 Applied Rupali Bank Limited 66,591,265 54,999,244 2 Years Islamic bonds 200,000,000 210,000,000 Employee Benefits BAS-19 Applied AB Bank Limited 5,279,783 20,737,043 2 years Treasury bonds 293,793,029 207,015,682 Accounting for Government Grants and Disclosure of Government Assistance BAS-20 Not Applicable Trust Bank Limited 23,383,880 18,926,253 5 years Treasury bonds 2,068,849,247 1,419,996,591 The Effects of Changes in Foreign Exchange Rates BAS-21 Applied Limited 57,294,690 157,800,900 10 years Treasury bonds 15,013,849,783 16,147,812,965 Borrowing Costs BAS-23 Not Applicable Sub total 185,095,114 322,929,263 15 years Treasury bonds 1,771,419,268 2,719,920,927 Related Party Disclosures BAS-24 Applied 20 years Treasury bonds 336,298,045 207,313,093 Accounting and Reporting by Retirement Benefit Plans BAS-26 Not Applicable Savings accounts Bangladesh House Building Finance Corporation (bearing interest - 5,000,000 Separate Financial Statements BAS-27 Applied Social Islami Bank Limited 799,970 771,973 rate @ 5.5%) (note 7.a.4) Investments in Associates and Joint Venture BAS-28 Not Applicable Southeast Bank Limited 9,354,308 40,421,446 19,684,209,372 23,623,109,254 Interests in Joint Ventures BAS-31 Not Applicable Sub total 10,154,278 41,193,419 Financial Instruments: Presentation BAS-32 Applied with some departure (note 2.1) 7.a.3 Investment in shares Earnings per Share BAS-33 Applied Fixed deposit receipts Interim Financial Reporting BAS-34 Applied Bangladesh Industrial Finance Company Limited 220,000,000 220,000,000 Quoted Impairment of Assets BAS-36 Applied Southeast Bank Limited - 200,000,000 AB Bank Limited 11,305,144 14,376,369 Provisions, Contingent Liabilities and Contingent Assets BAS-37 Applied AB Bank Limited - 200,000,000 Limited 31,197,511 26,345,870 Intangible Assets BAS-38 Applied National Bank of Pakistan 330,000,000 - Mercantile Bank Limited 13,323,351 17,058,870 Financial Instruments: Recognition and Measurement BAS-39 Applied with some departure (note 2.1) Midland Bank Limited 200,000,000 - BRAC Bank Limited - 57,717,139 Investment property BAS-40 Not Applicable 785,003,000 - Mutual Trust Bank Limited 10,821,603 9,156,748 Agriculture BAS-41 Not Applicable Commercial Bank of Ceylon PLC 290,000,000 - Limited 8,437,133 9,960,504 Lankabangla Finance Limited 500,000,000 300,000,000 Rupali Bank Limited 1,075,202 1,713,663 3.17 Standards issued but not yet effective The Institute of Chartered Accountants of Bangladesh (ICAB) has adopted following new standards and amendments Prime Finance & Investment Limited 50,000,000 200,000,000 Shahjalal Islami Bank Limited 3,119,594 2,657,432 to standards during the year 2015. All previously adopted reporting standards are consistently applied by the Bank as Union Capital Limited 250,000,000 200,000,000 9,877,506 11,856,758 explained in Note 3.16. IDLC Finance Limited 2,000,000,000 700,000,000 United Commercial Bank Limited 355,583,052 407,612,810 BFRS 9 Financial instruments: United Finance Limited 550,000,000 350,000,000 Social Islami Bank Limited 173,765,650 - People's Leasing and Financial Services Ltd. 500,000,000 600,000,000 Trust Bank Limited 41,821,525 30,762,732 Summary of the requirements Industrial and Infrastructure Development Finance Company Limited 150,000,000 - Investment Corporation of Bangladesh 1,531,877 1,973,384 BFRS 9, published in July 2014, replaces the existing guidance in BAS 39 'Financial instruments: Recognition and MIDAS Financing Limited 130,000,000 - Pragati Life Insurance Company Limited 2,785,528 4,245,103 measurement'. BFRS 9 includes revised guidance on the classification and measurement of financial instruments, a Uttara Finance and Investment Limited 600,000,000 - Pravati Insurance Company Limited 1,469,793 1,968,486 new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting International Leasing and Financial Services Limited 250,000,000 - Mercantile Insurance Company Limited 1,078,358 1,472,045 requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from BAS Investment Corporation of Bangladesh 7,000,000,000 - 39. Peoples Insurance Company Limited 1,603,200 2,094,180 Phoenix Finance & Investments Limited 200,000,000 - Continental Insurance Company Limited 796,320 1,139,180 BFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. Delta Brac Housing Finance Corporation Limited 400,000,000 - Agrani Insurance Company Limited 685,576 754,134 Possible impact on financial statements Fareast Finance & Investment Limited 300,000,000 - Sonar Bangla Insurance Limited 1,131,564 1,286,685 Industrial Promotion and Development Company of Bangladesh Limited 200,000,000 - The Bank is assessing the potential impact on its financial statements resulting from the application of BFRS 9. Standard Insurance Limited - 299,689 Sub total 14,905,003,000 2,970,000,000 Power Grid Company of Bangladesh Limited 35,242,020 31,019,120 BFRS 14 Regulatory deferral accounts: Total 15,355,924,462 3,480,471,770 Summit Purbanchol Power Company Limited 5,796,000 3,947,489 Summary of the requirements Saif Powertec Limited 25,852 - 5.a.2 Outside Bangladesh (Nostro accounts) Dhaka Electricity Supply Company Limited 22,384,282 34,088,360 BFRS 14 specify the financial reporting requirements for regulatory deferral account balance that arise when an entity Titas Gas Transmission & Distribution Co. Limited - 95,159,808 provides goods or services to customers at a price or rate that is subject to rate regulation. 2015 2014 Current accounts Currency Taka Taka Summit Power Limited 17,071,000 - BFRS 14 is effective for annual reporting periods beginning on or after 1 January 2016, with early adoption permitted. Khulna Power Company Limited 17,976,000 3,106,500 Mashreq Bank, New York, USA USD 30,803,201 40,649,779 BSRM Steels Limited 15,713,271 14,310,009 Possible impact on financial statements Habib American Bank, New York, USA USD 67,577,926 25,752,678 Beximco Limited 24,384,215 26,614,297 The Bank is assessing the potential impact on its financial statements resulting from the application of BFRS 15. N.A. New York, USA USD (19,785,990) 290,423,969 Matin Spinning Mills Ltd 34,306,966 4,617,380 HSBC, New York, USA USD 12,440,334 95,579,700 Heidelberg Cement Bangladesh Limited 14,240,241 - BFRS 15 Revenue from contracts with customers: Standard Chartered Bank, New York, USA USD (7,043,814) 252,532,255 AFC Agro Biotech Limited 23,332,548 - Summary of the requirements Standard Chartered Bank, Frunkfurt EURO 13,716,548 14,236,263 IDLC Finance Limited 3,870,285,716 3,756,128,148 Deutsche Bank, Frankfurt, Germany EURO 1,388,194 (19,733,111) Perfume Chemical Ind. Limited 1,652 1,652 BFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including BAS 18 'Revenue', BAS 11 'Construction contracts' and BFRIC Arab National Bank, Riyadh SAR 341,820 339,368 Raspit Inc. (BD) Limited 695,400 1,281,000 13 'Customer loyalty programmes'. Bank of Tokyo Mitsubishi Ltd., Japan JPY 5,776,137 327,408,794 Rangamati Food Products Limited 890,100 890,100 Deutsche Bank Trust Comp. USA USD 241,251 13,916,423 BFRS 15 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. German Bangla Joint Venture Foods Limited 75,600 75,600 Bank of Tokyo Mitsubishi Ltd., Kolkata, India ACUD 658,845 649,590 Somorita Hospital Limited 10,868 9,840 AB Bank Ltd., Mumbai, India ACUD (15,621,278) (7,282,137) Beximco Pharmaceuticals Limited - 32,684,864 Possible impact on financial statements Sonali Bank Ltd., Kolkata, India ACUD 1,205,510 1,681,001 Square Pharmaceuticals Ltd. - 4,911,500 The Bank is assessing the potential impact on its financial statements resulting from the application of BFRS 15. NIB Bank Limited, Karachi, Pakistan ACUD 5,238,849 7,664,386 Bangladesh Building Systems Ltd - 2,760,000 Agriculture: Bearer plants (amendments to BAS 16 and BAS 41): Standard Chartered Bank, Nepal ACUD 382,661 379,975 4,753,841,218 4,616,057,448 Commerz Bank AG. Frankfurt, Germany USD 8,723,740 48,678,184 Summary of the requirements Commercial Bank of Ceylon, Colombo, Sri Lanka ACUD 603,561 605,992 Unquoted Ordinary Shares These amendments require a bearer plant, defined as a living plant, to be accounted for as property, plant and Bank of Bhutan, Bhutan ACUD (233,281) 1,929,403 Central Depository Bangladesh Limited 6,277,770 6,277,770 equipment and included in the scope of IAS 16 'Property, plant and equipment', instead of BAS 41 'Agriculture'. Commerz Bank AG. Frankfurt, Germany EURO 7,535,835 15,935,161 KARMA Sangsthan Bank Limited 10,000,000 10,000,000 Commerz Bank AG. Frankfurt, Germany CHF 1,618,323 420,189 Industrial & Infrastructural Development Finance Company 42,453,820 42,453,820 The amendments are effective for annual reporting periods beginning on or after 1 January 2016, with early adoption Mashreq Bank, Mumbai, India ACUD 36,413,608 1,362,206 Limited permitted. Mashreq Bank, Mumbai, India EURO 387,963 260,744 Venture Investment Partners Bangladesh Limited 18,000,000 18,000,000 Possible impact on financial statements HDFC Bank Ltd, Mumbai, India ACUD 1,105,009 7,197,806 76,731,590 76,731,590 Banca Popolare Di Vicenza, Italy EURO 2,526,255 389,500 Unquoted redeemable preference Shares None. The Bank does not have any bearer plants. Standard Chartered Bank, London GBP 20,212,890 2,778,531 Unique Hotel & Resort Limited 45,000,000 60,000,000 3.18 Offsetting Mashreq Bank, London GBP 4,534,975 5,775,588 Desh Cambridge Kumargaon Power Limited 6,666,021 47,652,457 United Power Generation and Distribution Company Limited - 240,000,000 Financial assets and liabilities are offset and the net amount is presented in the balance sheet when, and only when, the Kookmin Bank, Korea USD 3,452,520 3,648,592 Group has a legal right to set off the recognised amounts and it intends either to settle on a net basis or to realise the Commerz Bank AG. Frankfurt AUD 7,266,929 4,236,503 51,666,021 347,652,457 asset and settle the liability simultaneously Standard Chartered Bank,Mumbai, India ACUD 14,847,632 3,564,948 Total 4,882,238,829 5,040,441,495 Income and expenses are presented on a net basis only when permitted under BFRSs, or for gains and losses arising Mashreq Bank, New York, USA (For OBU Operation) USD (37,338,548) 193,527,541 from a group of similar transactions such as in the Group’s trading activity Commerz Bank AG. Frankfurt, Germany (For OBU Operation) USD 10,289,384 118,995,233 Details are shown in Annexure-C. Commerz Bank AG. Frankfurt, Germany (For OBU Operation) EURO 44,773,466 247,509 3.19 Segment reporting Sub total 224,040,455 1,453,752,563 7.a.4 Debentures of Bangladesh House Building Finance Corporation - at redeemable value The Group and the Bank have no identified operating segment and as such presentation of segmental reporting is not Term deposits Opening balance 5,000,000 10,000,000 made in the financial statements as per BFRS 8. However, geographical and business segments wise limited disclosures are furnished in note 46. Mashreq Bank Limited, New York, USA USD 39,250,150 - Redeemed during the year (5,000,000) (5,000,000) Sonali Bank, Kolkata, India ACUD 631,068 625,310 Closing balance - 5,000,000 Inter-segment transactions are generally based on inter-branch fund transfer measures as determined by the management. Income, expenses, assets and liabilities are specifically identified with individual segments. Based on such Mashreq Bank, New York, USA (For OBU Operation) USD - 38,974,700 allocation, segmental balance sheet as on 31 December 2015 and segmental profit and loss account for the year ended Sub total 39,881,218 39,600,010 31 December 2015 have been prepared. Total 263,921,673 1,493,352,573

Details are shown in Annexure-B. The City Bank Limited Report and Financial Statements as at and for the year ended 31 December 2015

7.b Investments - City Brokerage Limited 8.a.10 Sector-wise loans and advances 10.a Fixed assets including premises, furniture and fixtures - The City Bank Limited 2015 2014 2015 2014 2015 2014 Taka Taka % of total loan Taka % of total loan Taka Taka Taka Membership Public sector 0.53% 763,107,491 0.58% 674,817,910 Cost/Revaluation Dhaka Stock Exchange Limited 580,999,000 580,999,000 Private sector 99.47% 142,324,393,790 99.42% 115,945,783,178 Land 4,232,440,000 4,232,440,000 Chittagong Stock Exchange Limited 19,001,000 19,001,000 100.00% 143,087,501,281 100.00% 116,620,601,088 Building 2,094,269,676 2,056,538,234 600,000,000 600,000,000 Work-in progress - building 422,163,852 402,482,070 8.a.11 Securities against loans/investments including bills purchased and discounted Investments in shares (note 7.b.1) 446,061,583 714,596,534 Furniture and fixtures 1,006,624,787 921,863,216 2015 2014 1,046,061,583 1,314,596,534 Office equipment and machinery 2,048,185,441 1,755,946,460 Taka Taka Bank's vehicles 252,333,818 225,766,205 7.b.1 This represents investment made by the City Brokerage Limited in purchase of shares of various companies listed in Leased assets - - Dhaka Stock Exchange Limited (DSE) and Chittagong Stock Exchange Limited(CSE) through its dealer account. Cost Collateral of movable/immovable assets 110,848,705,130 86,770,777,057 Software 280,325,418 260,463,259 price of the investment is Taka 451,465,814 (2014: 681,163,713) as on 31 December 2015. Local banks and financial institutions guarantee 4,858,067,512 5,013,120,884 Work-in progress - software 36,457,335 28,091,157 Foreign banks guarantee - - 7.c Investments - City Bank Capital Resources Limited 10,372,800,327 9,883,590,601 Export documents 6,196,923,771 3,243,917,536 Accumulated depreciation and amortisation (2,237,178,837) (1,777,634,030) Fixed Deposit Receipts (FDR) 3,945,205,757 3,627,709,724 Government securities: Written down value 8,135,621,490 8,105,956,571 FDR of other banks - - Treasury bonds - 107,259,700 Government guarantee 763,107,491 674,817,910 - 107,259,700 See Annexure - D for details. Personal guarantee 7,394,795,908 10,112,936,097 Others Other securities 9,080,695,712 7,177,321,880 Investments in quoted shares 227,084,378 166,793,521 10.b Fixed assets including premises, furniture and fixtures - City Brokerage Limited 143,087,501,281 116,620,601,088 Investments in unlisted securities (note 7.c.1) 129,000,000 129,000,000 356,084,378 295,793,521 8.a.12 Detail of large loan/investments Cost 356,084,378 403,053,221 Furniture and fixtures 21,377,353 20,597,692 As at 31 December 2015 there were 33 (31 December 2014: 21) borrowers or group with whom amount of Office equipment and machinery 26,759,297 25,736,511 7.c.1 This represent investment made by CBCRL in purchase of equity shares of ADN Telecom Limited and preference shares outstanding loans and advances/investments exceeded 10% of the total capital of the Bank. Total capital of the Bank Vehicles 4,789,476 4,789,476 of Regent Energy and Power Co. Limited. was Taka 22,574.87 million as at 31 December 2015 (Taka 23,484.06 million as at 31 December 2014). Software 4,147,609 2,827,800 8. Consolidated Loans and advances/investments 57,073,735 53,951,479 Number of borrowers or groups 33 21 Accumulated depreciation and amortisation (39,498,861) (32,266,122) Loans/investments, cash credits, overdrafts, etc. Amount of outstanding advances/investments (Taka) 45,611,119,680 30,260,106,011 Written down value 17,574,874 21,685,357 The City Bank Limited (note 8.a) 138,229,433,769 111,607,480,204 Amount of classified advances/investments therein (Taka) - - City Brokerage Limited (note 8.b) 2,197,481,201 2,157,150,421 10.c Fixed assets including premises, furniture and fixtures - City Bank Capital Resources Limited City Bank Capital Resources Limited (note 8.c) 303,818,478 205,562,153 8.a.13 Particulars of loans and advances/investments 140,730,733,448 113,970,192,778 Cost Mutual indebtedness: i) Loans/investments considered good in respect of which the Bank is Furniture and fixtures 2,730,271 1,430,635 Loan from The City Bank Limited - City Brokerage Limited* (2,561,883,319) (2,445,596,363) fully secured 126,612,009,661 99,330,343,111 Office equipment and machinery 1,577,135 2,188,795 Loan from City Brokerage Limited - City Bank Capital Software 7,153,744 2,200,000 (12,245,477) (8,797,878) Resources Limited ii) Loans/investments considered good against which the Bank holds no Vehicle 2,200,000 4,589,429 Loan from The City Bank Limited - CBL Money Transfer Sdn. Bhd. - (39,182,363) security other than the debtors' personal guarantee 7,394,795,908 10,112,936,097 13,661,150 10,408,859 (2,574,128,796) (2,493,576,604) Accumulated depreciation and amortisation (5,581,528) (3,295,032) 138,156,604,652 111,476,616,174 iii) Loans/investments considered good secured by the personal Written down value 8,079,622 7,113,827 Bills purchased and discounted (note 9) undertaking of one or more parties in addition to the personal guarantee of the 9,080,695,712 7,177,321,880 The City Bank Limited 4,858,067,512 5,013,120,884 10.d Fixed assets including premises, furniture and fixtures - CBL Money Transfer Sdn. Bhd. 143,014,672,164 116,489,737,058 debtors Cost *City Brokerage Limited availed loan facilities @10.50% p.a. from its parent company for extending margin financing to iv) Loans/investments adversely classified; provision not maintained there - - its customers. against Furniture and fixtures 9,822,336 7,261,076 143,087,501,281 116,620,601,088 Office equipment and machinery 6,871,964 6,911,612 8.a Loans and advances/investments - The City Bank Limited v) Loans/investments due by directors or officers of the banking company Vehicle 1,890,314 2,301,348 or 18,584,614 16,474,036 any of them either separately or jointly with any other persons 3,247,082,277 2,438,127,519 Loans/investments, cash credits, overdrafts, etc. (note 8.a.1) 138,229,433,769 111,607,480,204 Accumulated depreciation (7,639,163) (7,169,225) Bills purchased and discounted (note 8.a.2) 4,858,067,512 5,013,120,884 Written down value 10,945,451 9,304,811 143,087,501,281 116,620,601,088 vi) Loans/investments due from companies or firms in which the directors of the Bank have interest as directors, partners or managing agents or 11. Consolidated other assets 8.a.1 Loans/investments, cash credits, overdrafts, etc. in case of private companies as members 401,348,333 151,742,223 The City Bank Limited (note 11.a) 7,027,747,460 5,498,502,455 Inside Bangladesh City Brokerage Limited (note 11.b) 124,467,379 234,863,164 Secured overdrafts 1,359,958,689 328,581,662 vii) Maximum total amount of advances/investments, including temporary City Bank Capital Resources Limited (note 11.c) 87,439,870 43,058,183 Quard against TDR 960,850 14,921,980 advances made at any time during the year to directors or managers or CBL Money Transfer Sdn. Bhd. (note 11.d) 6,174,669 17,412,657 Cash credits 20,199,582,332 16,966,883,190 officers of the banking company or any of them either separately or 7,245,829,378 5,793,836,459 House building loans 990,711,996 816,712,986 jointly with any other person. 3,247,082,277 2,438,127,519 Goodwill arising on investment in subsidiaries 8,584,953 10,427,726 Loans against trust receipt 2,268,404,698 4,489,476,729 Mutual indebtedness: Loans against imported merchandise 23,644,911 18,343,799 viii) Maximum total amount of advances/investments, including temporary Payable to City Bank Limited - City Brokerage Limited - (1,700) Payment against document 33,480,602 46,921,119 advances/investments granted during the year to the companies or Payable to City Bank Limited - City Bank Capital Resources Limited (55,879,532) (18,491,674) Consumer credit schemes 42,375 42,375 firms Payable to City Bank Capital Resources Limited - City Bank Limited (13,810,773) - Lease finance/Izara (note 8.a.5) 24,915,770 34,232,750 in which the directors of the banking company have interest as Payable to City Bank Capital Resources Limited - City Brokerage Limited (11,927,019) (11,830,731) Hire purchase shirkatul melk 191,096,103 181,566,562 directors, Investment in subsidiaries (2,413,080,473) (2,413,080,473) Industrial credits 61,886,924,246 58,006,062,919 partners or managing agents or in the case of private companies, as - - (2,494,697,797) (2,443,404,578) Export development fund 6,163,443,169 3,196,996,417 members Adjustments for Consolidation - City Brokerage Limited - 93,474 Staff loans (note 8.a.14) 2,843,370,280 2,284,076,596 ix) Due from other banking companies - - Total consolidated other assets 4,759,716,534 3,360,953,081 City card loans 5,638,843,198 5,063,695,794 Small and medium enterprise loans 8,278,014,316 6,989,121,736 x) Classified loans and advances/investments 11.a Other assets- The City Bank Limited Transportation loans 1,088,105,786 1,104,431,991 (a) Classified loans and advances/investments on which interest has Bai-muajjal, Bi Salam, Murabah 16,393,661,119 1,319,416,856 not been charged 7,763,140,111 4,846,123,926 Income generating other assets City Drive 205,949,837 187,461,090 Increase of specific provision 1,655,036,143 (673,330,169) Interest income receivable (note 11.a.1) 845,538,997 863,353,324 City solution 5,126,391,210 5,623,459,368 Amount of loans written off 1,650,030,441 1,818,008,976 Investment in subsidiaries (note 11.a.2) 2,413,080,473 2,413,080,473 City Express 2,890,959,802 2,391,660,708 Amount realised against loans previously written off 451,753,183 151,243,705 Non income generating other assets City Gems 2,361,543 1,583,859 Stationery and stamps 17,204,440 18,228,314 Loan against Payroll 313,224,214 - (b) Provision on classified loans and advances/investments 4,626,939,779 2,971,903,636 Advance against rent and advertisement 353,443,906 293,014,568 Other loans and advances 2,305,386,723 2,541,829,718 Security deposits 31,126,840 33,449,822 138,229,433,769 111,607,480,204 (c) Provision kept against loans/investments classified as bad debts 3,866,367,069 2,434,523,177 Prepaid expenses 32,632,714 31,360,503 Outside Bangladesh - - Advance payment of tax (note 11.a.3) 998,940,694 1,254,193,379 138,229,433,769 111,607,480,204 (d) Interest credited to Interest Suspense Account 1,610,706,655 1,258,733,673 Branch adjustment account 6,310,077 - 8.a.2 Bills purchased and discounted Deferred tax assets (note 11.a.4) 720,189,377 47,199,838 xi) Cumulative amount of written off loans/investments Accounts receivables (note 11.a.5) 1,487,654,510 422,555,540 Payable Inside Bangladesh Opening balance 9,759,505,545 8,092,740,274 Receivable from City Brokerage Limited - 1,700 Inland bills purchased 1,314,998,334 2,177,599,432 Amount written off during the year 1,650,030,441 1,818,008,976 Receivable from City Bank Capital Resources Limited 55,879,532 18,491,674 Payable Outside Bangladesh Amount realised against loans/investments previously written off (451,753,183) (151,243,705) Protested bill 5,842,887 5,842,887 Foreign bills purchased and discounted 3,543,069,178 2,835,521,452 Closing balance 10,957,782,803 9,759,505,545 Intangible assets (note 11.a.6) 59,903,013 97,730,433 4,858,067,512 5,013,120,884 Advance payment to CBL Money Transfer Sdn. Bhd. (note 11.a.7) - - The amount of written off/classified loans/investments 7,027,747,460 5,498,502,455 8.a.3 Performing loans and advances/investments for which law suits have been filed 19,926,100,000 10,693,065,000 11.a.1 Interest income receivable Gross loans and advances/investments 143,087,501,281 116,620,601,088 8.a.14 Staff loan Interest receivable from Loans 118,971,498 105,856,220 Non-performing loans and advances/investments (note 8.a.3.1) (10,844,779,615) (6,858,621,133) Provident fund 453,837,518 407,131,440 Interest receivable from Placement 153,945,694 78,509,936 132,242,721,666 109,761,979,955 House building scheme 1,966,932,970 1,498,937,318 Vehicle scheme 362,273,235 322,423,770 Interest receivable from Government Security 572,621,805 678,987,169 8.a.3.1 Non-performing loans and advances/investments Consumer credit and other scheme 60,326,557 55,584,068 845,538,997 863,353,325 2,843,370,280 2,284,076,596 11.a.2 Investment in subsidiary Opening balance 6,858,621,133 7,251,011,770 8.a.15 Classification of loans and advances/investments Addition during the year 12,537,741,311 9,238,105,116 2015 2014 In Bangladesh Reduction during the year (8,551,582,828) (9,630,495,753) % of total loan Taka % of total loan Taka City Brokerage Limited 1,600,000,000 1,600,000,000 Closing balance 10,844,779,615 6,858,621,133 Unclassified City Bank Capital Resources Limited 750,000,000 750,000,000 Standard including staff loan 90.71% 129,787,816,277 92.59% 107,980,743,088 2,350,000,000 2,350,000,000 8.a.4 Residual maturity grouping of loans and advances/investments Special mention account (SMA) 1.72% 2,454,905,389 1.53% 1,781,236,867 Outside Bangladesh including bills purchased and discounted 92.42% 132,242,721,666 94.12% 109,761,979,955 CBL Money Transfer Sdn. Bhd. 63,080,473 63,080,473 Classified 2,413,080,473 2,413,080,473 Repayable on demand 6,604,302,693 9,184,811,007 Sub-standard 1.80% 2,576,084,662 0.84% 981,999,235 Not more than 3 months 35,940,817,688 38,904,335,546 Doubtful 0.35% 505,554,843 0.88% 1,030,497,972 11.a.3 Advance payment of tax More than 3 months but not more than 1 year 52,109,182,564 30,213,091,997 Bad/Loss 5.43% 7,763,140,111 4.16% 4,846,123,926 More than 1 year but not more than 5 years 37,657,953,389 31,637,282,383 7.58% 10,844,779,615 5.88% 6,858,621,133 Opening balance 1,254,193,379 2,044,014,666 More than 5 years 10,775,244,947 6,681,080,155 100.00% 143,087,501,281 100.00% 116,620,601,088 143,087,501,281 116,620,601,088 Paid during the year 927,002,383 1,095,662,188 Adjustment for previous years tax liability (1,182,255,068) (1,885,483,475) 8.a.16 Particulars of required provision for loans and advances/investments Closing balance 998,940,694 1,254,193,379 8.a.5 Lease finance/Izara 2015 2014 Taka Taka Lease rental receivable within 1 year 7,489,366 19,622,536 11.a.4 Deferred tax assets Lease rental receivable within 5 years 28,085,122 18,729,911 General provision on unclassified loans Deferred tax asset 720,189,377 47,199,838 Lease rental receivable after 5 years - - Loans/investments (excluding SMA) 1,577,530,540 1,618,898,306 Total lease/Izara rental receivable 35,574,488 38,352,447 Special mention account (SMA) 34,220,460 236,588,694 Detail calculation on deferred tax assets: Unearned interest receivable (10,658,718) (4,119,697) Required provision for unclassified loans and advances/investments 1,611,751,000 1,855,487,000 Taxable/ Net lease/Izara finance 24,915,770 34,232,750 A. Total provision maintained for unclassified loans 1,612,000,000 1,959,701,597 (deductible) Deferred tax 8.a.6 Loans and advances/investments B. Excess provision 249,000 104,214,597 temporary (assets)/ Book value Tax base difference liability Loans 116,668,931,898 94,297,093,372 2015 2014 Taka Taka Taka Taka Cash credits 20,199,582,332 16,966,883,190 Base for % of required Required Required Overdrafts 1,360,919,539 343,503,642 provision provision provision provision Fixed assets 3,230,809,030 2,993,523,246 237,285,784 94,914,314 138,229,433,769 111,607,480,204 Specific provision on classified Taka Taka Taka Bills purchased and discounted (note 8.a.2) 4,858,067,512 5,013,120,884 loans Unrealised gain on share 3,330,968,149 - 3,330,968,149 333,096,815 143,087,501,281 116,620,601,088 Receivable on Interest income- T bond 572,621,805 - 572,621,805 229,048,722 Sub-standard 1,965,461,413 5% - 20% 569,385,706 95,246,391 Provision against classified loan (3,866,367,069) - (3,866,367,069) (1,546,546,828) 8.a.7 Concentration of loans and advances/investments including bills purchased and discounted Doubtful 227,541,692 5% - 50% 112,219,225 437,225,208 Revaluation of land 4,232,440,000 - 4,232,440,000 169,297,600 Bad/Loss 3,849,027,069 100% 3,866,367,069 2,434,523,177 Deferred tax liability/(asset) (720,189,377) Advances to allied concerns of directors 403,711,997 154,050,923 Required provision for classified loans and advances/investments 4,547,972,000 2,966,994,776 Deferred tax asset up to last year (47,199,838) Advances chief executive and other senior executives 107,742,707 100,299,825 C. Total provision maintained for classified loans 4,626,939,779 2,971,903,636 Deferred tax (income)/expense (672,989,539) Advances to customer groups 16,600,133,163 15,451,637,590 D. Excess provision 78,967,779 4,908,860 Industrial loans and advances/investments 116,335,261,179 92,137,654,756 Profit for the year includes deferred tax income of Taka 672,989,539 which is not distributable as dividend as per BRPD Others loans and advances/investments 9,640,652,235 8,776,957,994 Total required provision for loans and advances/investments 6,159,723,000 4,822,481,776 circular no. 11 dated 12 December 2011. 143,087,501,281 116,620,601,088 Total provision maintained for loans and advances/investments (A+C) 6,238,939,779 4,931,605,233 11.a.5 Accounts receivables: Total excess provision (B+D) 79,216,779 109,123,457

8.a.8 Industry-wise loans and advances Advance against remittance 142,570,903 123,354,834 2015 2014 8.a.17 During the year 2015, no loan having outstanding Taka 500 crore or more was restructured. Receivable against card operation 108,559,025 112,595,578 % of total loan Taka % of total loan Taka Receivable against fraud forgeries 22,915,784 23,386,160 Receivable against sales proceeds of shares 4,054,600 22,515,738 Agricultural industries 2.70% 3,870,179,388 3.63% 4,230,808,271 8.b Loans and advances/investments - The City Brokerage Limited Receivable against encashment -SP/BSP/PSC 1,126,971,018 30,012,652 Large and medium industries 50.34% 72,032,516,242 43.12% 50,288,485,352 Advance to vendor for expense 31,437,769 10,358,267 Small and cottage industries 1.51% 2,161,598,097 1.46% 1,699,016,394 Margin loan was given to several individuals and institutions for doing share trading business through the City Unreconciled nostro entry 8,691,904 8,691,904 Commerce and trade industries 17.05% 24,394,295,537 17.89% 20,864,870,569 Brokerage Limited. Receivable under VAT current account 6,223,826 6,718,161 Insurance, real estate and service industries 13.83% 19,789,268,122 17.01% 19,839,747,963 Advance to staff for expense 252,690 4,581,477 Transportation and communications industries 4.09% 5,845,195,781 4.53% 5,283,597,906 8.c Loans and advances/investments - City Bank Capital Resources Limited Advance to DSE Bhaban - Nikunja 1,368,400 1,368,400 Others 10.48% 4,994,448,113 12.36% 14,414,074,633 Sundry debtors 34,608,591 78,972,369 100.00% 143,087,501,281 100.00% 116,620,601,088 Margin loan was given to several individuals and institutions for doing share trading business through CBCRL. 1,487,654,510 422,555,540

8.a.9 Geographical location-wise loans and advances 9. Bills purchased and discounted (note 8.a.2) 11.a.6 Intangible assets 2015 2014 Inside Bangladesh 2015 2014 Taka Taka Users license 30,223,652 32,435,828 Urban: % of total loan Taka % of total loan Taka Royalty 29,679,361 65,294,605 Payable in Bangladesh 1,314,998,334 2,177,599,432 59,903,013 97,730,433 Dhaka 78.23% 111,933,960,904 73.84% 86,110,951,121 Payable outside Bangladesh 3,543,069,178 2,835,521,452 Chittagong 14.35% 20,539,323,241 17.64% 20,569,940,959 4,858,067,512 5,013,120,884 11.a.6.1 Movement of intangible assets Sylhet 0.31% 445,122,374 0.33% 382,407,802 Rajshahi 2.29% 3,272,203,975 2.90% 3,377,326,998 9.1 Maturity grouping of bills purchased and discounted Opening balance 97,730,433 135,505,067 Khulna 1.15% 1,644,340,873 1.10% 1,278,802,410 Addition during the year - 52,778 Rangpur 1.92% 2,746,695,477 1.49% 1,742,780,197 Payable within one month 1,344,726,285 1,756,570,140 Amortisation during the year (37,827,420) (37,827,412) Barisal 0.18% 253,218,173 0.20% 229,589,149 Over one month but less than three months 1,322,701,558 1,284,008,999 Closing balance 59,903,013 97,730,433 98.43% 140,834,865,017 97.49% 113,691,798,636 Over three months but less than six months 2,190,639,669 1,972,541,745 Six months or more - - 11.a.7 The Bank made advance payment to customer on behalf of CBL Money Transfer Sdn. Bhd. Rural: 4,858,067,512 5,013,120,884 Dhaka 1.07% 1,528,674,869 1.52% 1,776,801,588 11.b Other assets - City Brokerage Limited Chittagong 0.40% 576,528,120 0.66% 767,186,218 10. Consolidated fixed assets including premises, furniture and fixtures Sylhet 0.07% 93,633,118 0.29% 343,877,389 Advances, deposits and prepayments 10,789,547 20,043,722 Rajshahi 0.04% 53,800,157 0.04% 40,937,257 The City Bank Limited (note 10.a) 8,135,621,490 8,105,956,571 Receivable from DSE 52,491,518 181,450,413 1.57% 2,252,636,264 2.51% 2,928,802,452 City Brokerage Limited (note 10.b) 17,574,874 21,685,357 Receivable from CSE (2,586,978) (2,429,027) Total inside Bangladesh 100.00% 143,087,501,281 100.00% 116,620,601,088 City Bank Capital Resources Limited (note 8,079,622 7,113,827 Advance payment of tax 63,773,292 35,798,056 10.c) Outside Bangladesh - - - - CBL Money Transfer Sdn. Bhd. (note 10.d) 10,945,451 9,304,811 124,467,379 234,863,164 Grand total 100.00% 1 43,087,501,281 100.00% 116,620,601,088 8,172,221,437 8,144,060,566 The City Bank Limited Report and Financial Statements as at and for the year ended 31 December 2015

15.a.7 Maturity analysis of inter-bank deposits 2015 2014 11.c Other assets - City Bank Capital Resources Limited 14.a.3 Borrowings secured/unsecured from other banks, financial institutions and agents Taka Taka 2015 2014 2015 2014 Taka Taka Taka Taka Payable on demand 331,442,945 2,047,031,127 Advances, deposits and prepayments 364,355 363,750 Up to 1 month 1,090,576,600 3,503,532,373 Advance income tax 14,467,355 7,655,745 Secured - 497,960,000 Over 1 month but within 3 months 86,615,134 2,247,559,252 Deferred tax assets 4,365,848 - Unsecured 22,079,989,593 16,445,944,708 Over 3 months but within 1 year 3,367,654,677 330,005,664 Stamps in hand 47,030 97,900 22,079,989,593 16,943,904,708 4,876,289,356 8,128,128,416 Account receivable 68,195,282 34,940,788 87,439,870 43,058,183 14.a.4 Maturity grouping of borrowings from other banks, financial institutions and agents 15.a.8 Maturity analysis of deposits 11.d Other assets - CBL Money Transfer Sdn. Bhd. Payable on demand 5,190,325,171 8,618,520,723 Up to 1 month 1,409,678,075 555,364,919 Bills payable: Payable on demand 16,679,524 222,450,531 Advances, deposits and prepayments 6,174,669 17,412,657 Over 1 month but within 3 months 5,766,939,963 1,342,596,639 Over 3 months but within 1year 7,636,482,405 3,837,116,720 Up to 1 month 466,178,180 215,274,707 Over 1 month but within 6 months 1,493,587,352 473,957,266 12. Non - banking assets Over 1 year but within 5 years 899,059,479 1,421,064,707 Over 5 years 1,177,504,500 1,169,241,000 Over 6 months but within 1 year - - Over 1 year but within 5 years - - Income generating: 22,079,989,593 16,943,904,708 Over 5 years but within 10 years - - Share 128,263,300 134,219,400 Over 10 years - - Non-income generating: 14.b City Brokerage Limited has taken overdraft loans from Mutual Trust Bank Limited and The City Bank Limited 1,976,445,056 911,682,504 Land 664,561,367 250,332,346 for extending margin financing and prefunding support for foreign trade of foreign clients at the rate of Other deposits: 792,824,667 384,551,746 15.00% and 10.50% respectively subject to revisions by the banks' management from time to time. Payable on demand 3,546,183,087 8,877,418,823 Up to 1 month 10,991,957,966 11,716,987,014 The City Bank Limited has been awarded absolute ownership on 40 mortgage properties through verdict of honourable Court under section 33 (7) of Artha Rin Adalat Ain, 2003. The Bank also acquired some lien shares Over 1 month but within 6 months 37,647,698,912 28,468,090,251 CBL Money Transfer Sdn Bhd. has taken overdraft facility from The City Bank Ltd. For prefunding support for as settlement of loan. Theses have been recorded at Taka 792,824,667 as non-banking assets. 14.c Over 6 months but within 1 year 22,799,279,462 15,183,148,080 remitting foreign currency from Malaysia @ 4.00% Over 1 year but within 5 years 59,124,107,817 45,829,822,797 Over 5 years but within 10 years 3,809,159,445 5,554,719,577 Over 10 years 3,833,901,665 2,184,646,492 15. Consolidated deposits and other accounts Name of Parties Type of Booking 2015 2014 141,752,288,354 117,814,833,034 assets Date 143,728,733,410 118,726,515,538 Taka Taka The City Bank Limited (note 15.a) 143,728,733,410 118,726,515,538

City Brokerage Limited 206,897,810 350,722,128 15.b City Brokerage Limited and City Bank Capital Resource Limited maintained current deposit and fixed deposit M/S Overseas Liner Agency 953 decimal 29/Dec/11 11,436,000 11,436,000 City Bank Capital Resources Limited 40,997,916 22,155,143 receipt accounts with its parent company, The City Bank Limited. Account wise outstanding balances are as land follows: M/S Habib Bastra Bitan 16.50 29/Dec/11 1,485,000 1,485,000 CBL Money Transfer Sdn. Bhd. 711,548 1,010,808 decimal land Inter-company indebtedness (note 15.b) (571,841,376) (650,910,560) Inter-company indebtedness among Holding company & Subsidiaries: M/S Misti enterprise 16.50 29/Dec/11 819,523 819,523 Adjustments for Consolidation - City Brokerage - (6,660,323) City Brokerage Limited - current accounts 381,669,293 503,074,775 decimal land Limited City Brokerage Limited - fixed deposits receipt accounts (2,609,251) - M/S World Resources Ltd 10 katha 1 29/Dec/11 69,466,379 69,466,379 Adjustments for Consolidation - City Bank Capital Resources Limited - (851,621) 379,060,042 503,074,775 chattak land 143,405,499,308 118,441,981,113 M/S Chowdhury Electronics 2.7 decimal 29/Dec/11 1,657,880 1,657,880 land City Bank Capital Resources Limited - current accounts 6,271,184 36,549,228 M/S Silva Synthetic Fabrics 475.50 29/Dec/11 211,670,625 101,202,742 15.a Deposits and other accounts - The City City Bank Capital Resources Limited -fixed deposits receipt accounts 171,397,617 99,455,826 decimal land & 29/ Bank Limited Dec/15 177,668,801 136,005,054 L.J.S Enterprise 181.96 29/Dec/11 3,677,959 3,677,959 Local bank deposits (note 15.a.1) 4,876,289,356 8,128,128,416 Inter-company indebtedness among Subsidiaries: decimal land Customer and other deposits 138,852,444,054 110,598,387,122 M/S Sikder Construction 14 decimal 29/Dec/11 12,131,206 12,131,206 143,728,733,410 118,726,515,538 Payable to City Bank Capital Resources Limited - City Brokerage Limited 15,112,533 11,830,731 land Total inter-company indebtedness 571,841,376 650,910,560 M/s. Nan Business Associates 5 decimal land 27/Dec/12 8,340,000 8,340,000 & 1,518 sft 15.a.1 Local bank deposits floor 16. Consolidated other liabilities Mr. Sharifuzzaman (Nawab) 20.5 decimal 27/Dec/12 2,950,867 2,950,867 2015 land CD SND FDR Mudaraba Total The City Bank Limited (note 16.a) 20,522,559,400 15,439,260,595 M/s. Ananna Enterprise 17.32 27/Dec/12 10,240,097 10,240,097 Name of Bank Taka Taka Taka savings deposit Taka City Brokerage Limited (note 16.b) 515,947,289 484,326,089 decimal land City Bank Capital Resources Limited (note 16.c) 140,562,139 74,186,510 Shibpur Rice Mill 150.75 27/Dec/12 1,829,498 1,829,498 Taka decimal land Trust Bank Limited - 155,472,412 300,000,000 - 455,472,412 CBL Money Transfer Sdn. Bhd. (note 16.d) 45,660,873 29,027,617 Taijel Store 5.80 decimal 27/Dec/12 2,461,873 2,461,873 Dutch-Bangla Bank Limited - 114,329 - - 114,329 21,224,729,701 16,026,800,811 land 271,444 - - - 271,444 Mutual indebtedness: Rahman Traders 22.00 27/Dec/12 1,171,273 1,171,273 Islami Bank Bangladesh Limited - - - 1,262,891,877 1,262,891,877 Payable to City Bank Limited - City Brokerage Limited - (1,700) decimal land Payable to City Bank Limited - City Bank Capital Resources Limited (55,879,532) (18,491,674) M/s. Chand & Sons 6.60 decimal 10/Oct/13 1,850,139 1,850,139 Sonali Bank Ltd. - - - - - land Southeast Bank Limited - 1,350,257 - - 1,350,257 Payable to City Bank Limited - CBL Money Transfer SDN BHD (10,569,516) (959,749) M/s. Ashraf Traders 12 decimal 20/Oct/13 3,352,735 3,352,735 Al Arafah Islami Bank Limited - - - 27,675,852 27,675,852 Payable to City Bank Capital Resources Limited - City Bank Limited (13,810,773) - land Limited - - - 267,068 267,068 Payable to City Brokerage Limited - City Bank Capital Resources Limited (8,226,727) (8,797,878) M/s. Rafique Repairing & 8 acre land 20/Oct/13 1,371,088 1,371,088 Bangladesh Krishi Bank 1,176 - - - 1,176 (88,486,548) (28,251,001) Motor Machinery Parts Friends International 225.35 3/Mar/14 14,888,087 14,888,087 - 211,410 - - 211,410 decimal land Pubali Bank Limited - 835,560 - - 835,560 Adjustments for Consolidation - City Bank Capital Resources Limited - (21,462,478) Lucky Trade Concern 7.89 decimal 29/Jun/15 130,326,220 - BRAC Bank Limited - 3,141,200 - - 3,141,200 Adjustments for Consolidation - CBL Money Transfer SDN BHD - (800,524) land Social Islami Bank Limited - - - 11,971 11,971 - (22,263,002) M/s Mostafa Store 2.7 decimal 20/Dec/15 747,144 - Export Import Bank of - - 1,000,000,000 2,012,353,002 3,012,353,002 Total consolidated other liabilities 21,136,243,153 15,976,286,808 land Bangladesh Ltd. M/s General Services 375.5 20/Dec/15 1,905,964 - AB Bank Limited - 88,605 - - 88,605 decimal land 16.a Other liabilities - The City Bank Limited M/s Galeeb International 8.25 decimal 22/Dec/15 3,507,045 - Eastern Bank Limited - 315,617 - - 315,617 land Standard Bank Limited - 79,786 - - 79,786 Provision for loans and advances/investments (note 16.a.1) 6,238,939,779 4,931,605,233 M/s Balaka Industries 7 katha land 22/Dec/15 6,390,367 - Shahjalal Islami Bank Limited - - - 1,148,149 1,148,149 Provision for outstanding off-balance sheet exposures (note 16.a.2) 511,563,933 490,563,933 Alif Builders & Co. 4.51 decimal 22/Dec/15 13,647,649 - IFIC Bank Limited - - - - - Interest suspense account (note 16.a.3) 1,610,706,655 1,258,733,673 land - 104,460,178 - - 104,460,178 Other provision (note 16.a.5) 414,709,265 370,704,063 M/s Dhaka Eylet & Bartack 34 decimal 23/Dec/15 4,710,476 - NRB Bank Limited - 2,001,626 - - 2,001,626 Provision for income tax (note 16.a.6) 2,491,262,773 2,084,797,303 Center land M/s Alamin Engineering 2.50 katha 23/Dec/15 2,340,929 - The Farmers Bank Limited - 3,597,837 - - 3,597,837 Interest and other expenses payable 8,537,995,371 5,901,191,469 land and 272,620 271,668,817 1,300,000,000 3,304,347,920 4,876,289,356 Branch adjustment account - 7,931,141 8.25 decimal 15.a.2 Deposits and other accounts Provision for nostro account 8,692,635 8,692,635 land 2015 2014 Payable to CBL Money Transfer SDN BHD 3,190,414 959,749 M/s S S Poultry Feed 12.32 23/Dec/15 4,152,867 - Taka Taka Security value adjustment for repo 99,718,000 - decimal land Current deposits and other accounts M/s Sathi Foods & Oil 15 decimal 23/Dec/15 10,683,879 - Others 605,780,575 384,081,396 Current, Al-wadeeah, and Manarah current deposits 12,975,704,505 9,770,145,337 Industries land 20,522,559,400 15,439,260,595 M/s G T Corporation 1.75 katha 24/Dec/15 658,713 - Foreign currency deposits 1,252,189,024 1,428,590,333 land Security deposits receipts 3,860,158 3,882,658 16.a.1 Provision for loans and advances/investments M/s MIM Pictures International 51.5 decimal 24/Dec/15 1,763,421 - Sundry deposits (note 15.a.3) 6,340,411,149 3,270,763,698 land 20,572,164,836 14,473,382,026 M/s Shaans Denim 1670 sft Flat 24/Dec/15 34,880,000 - Movement in specific provision on classified loans/ Bills payable investments: M/s Aparel King Limited 16.34 24/Dec/15 7,189,924 - Pay orders issued 1,961,706,177 896,728,084 Provision held at the beginning of the year 2,971,903,636 3,645,233,805 decimal land Fully provided debts written off during the year (1,205,978,780) (1,604,872,277) M/s Suchi Enterprise 50.24 24/Dec/15 3,602,354 - Pay slips issued 4,365,596 4,399,837 decimal land Demand draft 10,373,283 10,554,583 Fully waived during the year - - M/s A B Traders 3.63 acre 24/Dec/15 899,503 - 1,976,445,056 911,682,504 Recoveries of amounts previously written off 365,813,326 151,243,705 land Specific provision made during the year 2,147,500,000 780,298,403 M/s The Media Advertising 17.50 24/Dec/15 1,627,948 - Savings bank deposits (note 15.a.4) 31,213,313,434 22,987,673,384 Transfer from provision for unclassified accounts 347,701,597 - decimal land Provision held at the end of the year 4,626,939,779 2,971,903,636 and 5 katha land Fixed deposits M/s Mondira Medico 12.20 24/Dec/15 4,496,291 - Fixed deposits, Mudaraba, and Manarah fixed deposits 74,730,509,524 69,797,456,591 Movement in general provision on unclassified loans/investments: decimal land Short notice deposits, Mudaraba, and Manarah short notice 10,108,768,378 6,578,834,618 Provision held at the beginning of the year 1,959,701,597 1,200,000,000 and 3 acre deposits Transfer to provision for classified accounts (347,701,597) - land Non resident deposits 307,068,139 47,156,073 Transfer from other provision - - M/s. Nan Business Associates 256 decimal 28/Dec/15 55,181,250 - Scheme deposits (note 15.a.5) 4,820,464,043 3,930,330,342 General provision made during the year - 759,701,597 land 89,966,810,084 80,353,777,624 Provision held at the end of the year 1,612,000,000 1,959,701,597 M/s Tajco Ltd 1.60 acre 30/Dec/15 15,049,194 - Total deposits and other accounts 143,728,733,410 118,726,515,538 land 6,238,939,779 4,931,605,233 Abrar Steel Mills Ltd. Prime Bank 15/Nov/12 99,550,000 107,800,000 Ltd.'s share 15.a.3 Sundry deposits 16.a.2 Provision on off-balances sheet exposures Globe International Bank Asia 28/Dec/14 28,713,300 26,419,400 Ltd.' share Sundry creditors 1,199,315,433 212,360,016 As per BRPD circular no. 14 dated 23 September 2012 banks are advised to maintain general provision 792,824,667 384,551,746 Foreign currency 799,525 799,525 against outstanding off-balance sheet exposures @ 1% and in order to comply with the circulars, bank Margin on letters of credit 748,693,599 802,304,876 maintained provision of Taka 511,563,933 (2014: Taka 490,563,933) against requirement of Taka 511,202,674 13. Tier-II subordinated bond (2014: Taka 470,485,044 ) as at 31 December 2015. Margin on letters of guarantee 245,515,336 187,569,174 Interest payable on three stage deposits 3,690,272 4,419,326 In year 2014, the bank with prior consent of regulatory bodies, i.e. Bangladesh Securities and Exchange Opening balance 490,563,933 490,563,933 Sanchaypatra 1,300,000 1,300,000 Commission and Bangladesh Bank, issue Tier-II Subordinated Bond to several banks and financial Addition during the year 21,000,000 - Unclaimed foreign DD 3,458,788 4,052,945 institutions. Issued bonds are 6 years unsecured instruments. Cap of interest on the issued bonds is 12.5% Transfer from other provision - - to 14.5%. Institution wise subscription towards the bonds are: Security money- suppliers 27,876,363 27,400,980 Closing balance 511,563,933 490,563,933 Security money- staff 1,013,810 1,013,810 Mercantile Bank Limited 783,000,000 783,000,000 Security deposits NRB 43,677,646 29,835,874 16.a.3 Interest suspense account BRAC Bank Limited 548,000,000 548,000,000 Unclaimed balances 212,764 227,647 Limited 313,000,000 313,000,000 Hajj deposits 194,597 194,597 Interest suspense account on classified loans and advances 1,181,015,203 603,673,052 NRB Bank Limited 313,000,000 313,000,000 Margin on inland bills purchased 185,000 185,000 Interest suspense on special mention account 23,409,904 131,277,735 IDLC Finance Limited 313,000,000 313,000,000 Foreign bills purchased awaiting remittance 3,524,996,441 1,810,894,237 Interest suspense on standard loans 406,281,548 523,782,886 NRB Commercial Bank Limited 196,000,000 196,000,000 Imprest fund - cash incentive 67,017 67,866 1,610,706,655 1,258,733,673 Pubali Bank Ltd. 196,000,000 196,000,000 Key deposits 1,087,550 1,134,550 Saudi-Bangladesh Industrial and Agricultural Investment Company Limited 180,000,000 180,000,000 Risk fund (Consumer Credit Schemes and lease finance) 80,428 80,428 16.a.4 Movement of interest suspense account Dhaka Bank Limited 79,000,000 79,000,000 Lease deposits 346,592 346,592 United Finance limited 79,000,000 79,000,000 Agent commission on consumer credit schemes 232,757 232,757 Opening balance 1,258,733,673 948,942,600 3,000,000,000 3,000,000,000 CIB service charges 2,107,215 1,593,645 Amount transferred to "interest suspense" account during the year 1,563,421,448 1,283,496,434 Auto debit receipt/payment () 111,480 5,783,654 Amount recovered from "interest suspense" account during the year (610,083,317) (594,309,485) 14. Consolidated borrowings from other banks, financial institutions and agents Interest payable on City Shomriddhi - - Amount waived during the year (157,313,489) (166,259,177) Sundry deposit - ATM 19,509,329 500 Amount written off during the year (444,051,660) (213,136,699) The City Bank Limited (note 14.a) 22,079,989,593 16,943,904,708 Charges against credit rating 3,042,024 3,460,099 Closing balance 1,610,706,655 1,258,733,673 City Brokerage Limited (note 14.b) 2,444,712,644 2,698,459,855 Payable against cash advance 820,838 1,423,838 CBL Money Transfer Sdn. Bhd. (note 14.c) 111,578,739 39,215,899 Payable against legal expenses 9,960,360 5,330,803 16.a.5 Other provision 24,636,280,976 19,681,580,462 Payable against SP and others 251,576,000 40,475,000 Mutual indebtedness: Sundry deposits - City Card - local 17,707,019 13,622,344 Provision against employee bonus 225,048,998 211,043,796 Loan from The City Bank Limited-City Brokerage 2,444,712,644) (2,445,596,363) Sundry deposits - City Card - international 22,242,783 21,595,303 Provision against investment 121,100,000 121,100,000 Limited Sundry deposits - Amex Card- local 168,269,337 72,176,662 Provision against other assets 41,714,380 31,714,380 Loan from The City Bank Limited- CBL Money (111,578,739) (39,215,899) Charge Back - Amex Card - international 6,737,514 2,511,145 Provision against interest receivable 1,003,000 1,003,000 Transfer Sdn. Bhd. Sundry deposits - foreign settlement 106,437 106,437 22,079,989,593 17,196,768,200 Provision against good borrower 20,000,000 - Sundry deposits - Master Cards 25,295,881 9,497,466 Provision against protested bills 5,842,887 5,842,887 Charge back - Master Cards 1,056,028 288,100 14.a Borrowings from other banks, financial institutions and agents 414,709,265 370,704,063 VAT on LC Commission 360,326 323,507 Others 8,764,660 8,154,995 In Bangladesh (note 14.a.1) 18,620,517,535 12,656,687,708 16.a.5.1 Movement of other provision Outside Bangladesh (note 14.a.2) 3,459,472,058 4,287,217,000 6,340,411,149 3,270,763,698 22,079,989,593 16,943,904,708 15.a.4 Savings bank deposits Opening balance 370,704,063 303,794,539 Addition during the year 182,500,000 133,150,000 Savings bank deposits 27,572,392,107 22,356,635,529 14.a.1 In Bangladesh Adjustment during the year (138,494,798) (66,240,476) Mudaraba/manarah savings deposits 3,640,921,327 631,037,855 Closing balance 414,709,265 370,704,063 Dhaka Bank Limited 785,003,000 - 31,213,313,434 22,987,673,384 United Commercial Bank Limited - 300,000,000 15.a.5 Scheme deposits 16.a.6 Provision for income tax Rupali Bank Limited 2,400,000,000 1,750,000,000 City Bank Sanchaya scheme 2,211,666 1,995,312 Sonali Bank Limited - 3,000,000,000 Opening balance 2,084,797,303 2,542,011,488 Bonus deposit scheme 200,000 200,000 370,000,000 150,000,000 Adjustment for settlement of tax (1,182,255,068) (1,885,483,475) Deposit pension scheme (note 15.a.5.1) 625,350 7,507,149 BASIC Bank 250,000,000 1,000,000,000 Provision during the year (note 16.a.6.1) 1,588,720,538 1,531,252,396 Three stage scheme deposit 15,331,703 26,407,875 Dutch-Bangla Bank Limited - 500,000,000 Adjustment of deferred tax liability/(asset) (note 16.a.6.2) - (102,983,106) Monthly benefit scheme 9,300,000 13,600,000 Janata Bank Limited - 900,000,000 Closing balance 2,491,262,773 2,084,797,303 Education savings scheme 243,677 365,243 Agrani Bank Limited - 1,000,000,000 Junior savers scheme 152,199,803 277,683,380 One Bank Limited 1,000,000,000 - 16.a.6.1 Provision for current tax of Taka 1,588,720,538 @ 40% and provision for prior year Taka 1,531,252,396 have Lakpati savings scheme 961,483 6,792,798 Mutual Trust Bank Limited 210,000,000 - been made, as prescribed by Finance Act, of the accounting profit of the bank after considering some of the Marriage savings scheme 47,999,195 56,828,199 add backs to income and disallowances of expenditure as per Income Tax Ordinance, 1984. Jamuna Bank Limited 10,000,000 - Mudaraba monthly deposit scheme 179,677,043 42,315,183 Bank Asia Limited 550,000,000 - City Shomriddhi 4,204,690,137 3,312,271,168 Corporate tax position of the bank has been shown in Annexure-E Midland Bank Limited 80,000,000 - City Projonmo 203,276,031 182,252,208 Commercial Bank of Ceylon 290,000,000 - 16.a.6.2 Deferred tax liability PLC Manarah Hajj deposit scheme 3,747,955 2,111,827 Bangladesh Bank against Assured Liquidity - 497,960,000 4,820,464,043 3,930,330,342 Support Opening balance - 102,983,106 Refinance against EDF loan from Bangladesh 5,434,689,117 3,254,293,037 15.a.5.1 Deposit pension scheme was closed from the year 1995 and its interest was 15% p.a. Addition (adjustment) during the year - (102,983,106) Bank Closing balance - - Refinance against SME loan from Bangladesh 240,825,418 304,434,671 Bank Borrowings from Bangladesh Bank 7,000,000,000 - 15.a.6 Sector-wise deposits 16.b Other liabilities - City Brokerage Limited 18,620,517,535 12,656,687,708 Government 1,701,162,138 253,714,472 Interest suspense 166,005,081 166,005,081 Provision for loans and advances 275,658,549 274,889,257 14.a.2 Outside Bangladesh Deposit money banks 4,876,289,356 8,128,128,416 Accounts payable 4,553,668 7,454,216 International Finance Corporation 785,003,000 1,948,735,000 Other public 2,884,271,871 710,049,735 Accrued expenses 80,500 69,000 Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V 785,003,000 1,169,241,000 Foreign currency 1,252,189,024 1,428,590,333 (FMO) Private 133,014,821,021 108,206,032,582 Payable to The City Bank Limited - 1,700 Global Climate Partnership Fund S.A.Sicav-Sif (GCPF). 1,177,504,500 1,169,241,000 143,728,733,410 118,726,515,538 Provision for taxation and VAT 69,649,491 35,906,835 Mashreq Bank NY 601,944,920 - 515,947,289 484,326,089 United Bank of UAE 110,016,638 - 3,459,472,058 4,287,217,000 The City Bank Limited Report and Financial Statements as at and for the year ended 31 December 2015

16.c Other liabilities - City Bank Capital Resources Limited 2015 2014 23.2 Irrevocable Letters of Credit Taka Taka 17.5.a Capital Adequacy Ratio - The City Bank Limited 2015 2014 2015 2014 Taka Taka Payable to The City Bank Limited 55,879,532 18,491,674 Taka in crore Taka in crore In land 409,403,049 613,559,616 Payable to City Brokerage Limited 8,226,727 8,797,878 Common Equity Tier 1 Capital (CET1) General 10,107,009,699 7,382,424,363 VAT and TDS Payable 2,433,684 1,386,039 Paid up capital 875.80 834.09 Back to Back LC 4,049,990,151 2,375,626,568 Accrued expenses 646,163 110,719 Non-repayable share premium account 66.09 108.21 14,566,402,899 10,371,610,547 Other payables 6,231,615 5,730,836 Statutory reserve 500.28 410.39 Margin on LC (748,693,599) (802,304,876) Provision for diminution in value of investment 43,658,476 21,462,478 General reserve 1.14 1.14 13,817,709,300 9,569,305,671 Provision for taxation 23,485,942 18,206,886 Dividend equalization reserve - - 140,562,139 74,186,510 Retained earnings (note 21.a) 308.77 164.61 23.3 Bills for collection 1,752.08 1,518.44 16.d Other liabilities - CBL Money Transfer Sdn. Bhd. Regulatory Adjustments / Deductions from CET1 Outward local bills for collection 17,450 - Deferred tax assets (68.42) - Outward foreign bills for collection 2,658,413,574 2,432,204,153 Settlement Obligation 42,588,250 21,487,445 20% of Excess Investment in equity of other banks, FI and Ins. Co. (60.51) - Inward local bills for collection 3,383,236,448 3,521,360,678 Accrued expenses 508,353 1,671,765 1,623.15 1,518.44 Inward foreign bills for collection 4,812,902,524 4,548,417,675 Others payable 2,564,270 5,868,407 10,854,569,996 10,501,982,506 45,660,873 29,027,617 Tier 2 Capital Margin on bill collection (185,000) (185,000) Tier-II subordinated bond 300.00 300.00 10,854,384,996 10,501,797,506 17. Share capital General provision (note 17.5.a.2) 166.39 245.03 Assets revaluation reserve (up to 50%) 235.57 235.57 23.4 Forward assets purchased and forward deposits placed 17.1 Authorised: Revaluation reserve for equity instruments (up to 10%) 27.93 27.93 1,500,000,000 ordinary shares of Taka 10.00 each 15,000,000,000 10,000,000,000 Revaluation reserve for HTM securities (up to 50%) 1.10 1.10 Forward sales/contracts 2,045,042,200 2,124,260,400 Revaluation reserve for HFT (up to 50%) 20.33 20.33 2,045,042,200 2,124,260,400 Authorised Share Capital of the Bank has been increase to Taka 15,000,000,000 from Taka 10,000,000,000 by 751.32 829.96 a special resolution dated 28 June 2015. Regulatory Adjustments / Deductions from Tier 2 capital 23.5 Suit filed by the bank 20% of Tier-II subordinated bond (60.00) - 17.2 Issued, subscribed and fully paid up: No. of shares 20% of revaluation reserve for fixed assets and securities (56.99) - No law suit has been filed by the bank against contingent liabilities. 634.34 829.96 24. Income statement - The City Bank Limited Ordinary shares of Taka 10.00 each issued for cash 240,463,470 2,404,634,700 2,404,634,700 Total capital 2,257.49 2,348.41 Income: Ordinary shares of Taka 10.00 each issued as bonus shares: Interest, discount and similar income (note 24.1) 17,636,770,494 16,076,180,329 up to 31 December 2014 593,629,893 5,936,298,930 5,936,298,930 Total assets 21,484.04 17,722.75 Dividend income 208,184,514 124,895,827 from 1 January - 31 December 2015 41,704,668 417,046,680 - Total risk weighted assets (note 17.5.a.1) 16,094.99 15,229.15 Fees, commission and brokerage (note 24.2) 1,107,071,619 1,115,401,830 875,798,031 8,757,980,310 8,340,933,630 Required capital (10% of risk weighted assets) 1,609.50 1,522.92 Gains less losses arising from dealing in securities (note 27.a) 1,814,620,446 210,672,034 Surplus 647.99 825.49 Gains less losses arising from investment securities (note 27.a) 55,901,494 407,239,088 The Bank offered 1:1 right share during the year 2010 and on the record date the outstanding number of Gains less losses arising from dealing in foreign currencies (note 28.a) 777,207,899 653,884,558 shares was 19,639,125 as the bonus for 2009 was credited before the record date for right share. During the Total Capital Ratio 14.03% 15.42% Other operating income (note 29.a) 1,003,435,729 857,064,973 course of right exercise the honourable High Court issued an injunction order against 392,778 shares. The T-1 Capital Ratio 10.08% 9.97% verdict of the Court was to restrain exercise of right shares against the said 392,778 shares and also asked to Profit less losses on interest rate changes - - Leverage Ratio 7.06% 8.40% maintain provision for future dividend, which may be declared on the aforementioned shares. Accordingly, the 22,603,192,195 19,445,338,639 Liquidity Coverage Ratio 161.34% 135.88% Bank maintained a reserve of Taka 49,185,729 till 31 December 2015 for subsequent declared stock dividend Expenses: for the prejudice shares, which is shown under surplus in profit and loss account. Net Stable Funding Ratio 100.15% 150.82% Interest/profit paid on deposits, borrowings etc. 9,818,866,758 8,906,622,116 Administrative expenses (note 24.3) 4,432,032,543 4,040,639,748 17.5.a.1 Risk weighted assets 17.3 History of issued, subscribed and fully paid up capital: Other operating expenses (note 38.a) 1,219,574,521 975,630,311 Taka in crore Taka in crore Depreciation on bank's assets (note 37.a) 459,605,305 386,436,430 A. Credit Risk Accounting year Declaration No. of share Value of capital Cumulative On- Balance sheet 11,770.23 10,098.75 15,930,079,127 14,309,328,605 1983 Opening capital 3,400,000 34,000,000 34,000,000 Off-Balance sheet 1,540.60 2,314.86 Income over expenditure 6,673,113,068 5,136,010,034 1985 Further subscription 1,000,000 10,000,000 44,000,000 13,310.83 12,413.61 24.1 Interest, discount and similar income 1987 Initial public offer 3,600,000 36,000,000 80,000,000 B. Market Risk 1,165.51 1,388.44 1990 1:1 Right issue 8,000,000 80,000,000 160,000,000 C. Operational Risk 1,618.65 1,427.10 Interest income (note 25.a) 15,324,758,903 14,029,067,499 2002 1:2 Right issue 8,000,000 80,000,000 240,000,000 Total Risk weighted assets (A+B+C) 16,094.99 15,229.15 2004 1:1 Right issue 24,000,000 240,000,000 480,000,000 Interest income on treasury bills/reverse repo/bonds (note 27.a) 2,311,893,699 2,046,820,730 Interest on debentures (note 27.a) 117,892 292,100 2005 50% stock dividend 24,000,000 240,000,000 720,000,000 17.5.a.2 General provision maintained against unclassified loan/investments & 17,636,770,494 16,076,180,329 2006 50% stock dividend 36,000,000 360,000,000 1,080,000,000 outstanding off balance sheet exposures 2007 10% stock dividend 10,800,000 108,000,000 1,188,000,000 2008 15% stock dividend 17,820,000 178,200,000 1,366,200,000 General provision maintained against unclassified loan/investments (note 161.20 195.97 24.2 Fees, commission and brokerage 2009 15% stock dividend 20,493,000 204,930,000 1,571,130,000 16.a.1) 2010 25% stock dividend 39,278,250 392,782,500 1,963,912,500 General provision maintained against outstanding off balance sheet 51.16 49.06 Commission (note 28.a) 1,107,071,619 1,115,401,830 2010 1:1 Right issue 192,463,470 1,924,634,700 3,888,547,200 exposures (note 16.a.2) Brokerage - - 2011 30% stock dividend 116,656,410 1,166,564,100 5,055,111,300 212.36 245.03 1,107,071,619 1,115,401,830 2012 25% stock dividend 126,377,782 1,263,777,820 6,318,889,120 2013 10% stock dividend 63,188,891 631,888,910 6,950,778,030 1.25% of Risk weighted assets for credit risk 166.39 155.17 24.3 Administrative expenses 2014 20% stock dividend 139,015,560 1,390,155,600 8,340,933,630 2015 5% stock dividend 41,704,668 417,046,680 8,757,980,310 Eligible amount of general provision 166.39 245.03 Salary and allowances 3,166,373,641 2,846,791,183 875,798,031 8,757,980,310 Rent, taxes, insurance, electricity, etc. (note 31.a) 674,541,834 601,600,416 18. Statutory reserve Legal expenses (note 32.a) 25,639,943 24,576,045 2015 2014 Postage, stamp, telecommunication, etc. (note 33.a) 70,980,951 80,017,694 Taka Taka Although face value of paid up capital was split into Taka 10 from Taka 100 during the year 2011, we Stationery, printing, advertisement, etc. (note 34.a) 183,857,261 201,469,360 considered face value of share @ Taka 10 from the inception of the bank for this statement. Opening balance 4,103,894,030 3,384,692,023 Chief Executive's salary and fees (note 35) 16,409,425 15,046,921 Addition during the year (20% of pre-tax profit) 898,922,614 719,202,007 Directors' fees (note 36.a) 1,244,000 1,145,000 17.3.a Percentage of shareholdings at the closing date Closing balance 5,002,816,644 4,103,894,030 Particulars 2015 2014 Auditors' fees 1,209,750 1,071,750 Taka Percentage (%) Taka Percentage (%) Repair of Bank's assets (note 37.a) 291,775,738 268,921,379 19. Share premium 4,432,032,543 4,040,639,748 Sponsors and general public 6,689,912,900 76.39% 6,514,060,940 78.10% Financial institutions 2,068,067,410 23.61% 1,826,872,690 21.90% 8,757,980,310 100.00% 8,340,933,630 100.00% Opening balance 1,082,116,244 1,924,634,700 25. Consolidated interest income/profit on investment Adjustment for issuance of stock dividend (421,259,231) (842,518,456) 17.4 Classification of shareholders by holding Closing balance 660,857,013 1,082,116,244 The City Bank Limited (note 25.a) 15,324,758,903 14,029,067,499 City Brokerage Limited 122,547,723 188,918,509 2015 2014 Share premium was received against issue of 19,246,347 right shares during the year 2010. City Bank Capital Resources Limited 50,139,229 60,038,718 Number of No. of Number of CBL Money Transfer Sdn. Bhd. - 3,785 share holders Shares % of total share % of total 20. Consolidated other reserve 15,497,445,855 14,278,028,511 holding holders holding Inter-company transactions The City Bank Limited (note 20.a) 7,999,742,013 7,944,813,717 (260,101,282) (283,831,142) 01 - 500 shares 33,375 4,452,945 0.51% 43,846 0.68% City Brokerage Limited - 33,432,821 (2,914,921) (239,277) 501 - 5,000 shares 18,440 31,681,220 3.62% 22,595 4.69% 7,999,742,013 7,978,246,538 (6,239,407) (20,921,401) 5,001 - 10,000 shares 2,222 15,756,706 1.80% 2,628 2.29% (269,255,610) (304,991,820) 10,001 - 20,000 shares 1,188 16,332,084 1.86% 1,384 2.33% 20.a Other reserve - The City Bank Limited 15,228,190,245 13,973,036,691 20,001 - 30,000 shares 388 9,405,177 1.07% 446 1.31% 30,001 - 40,000 shares 151 5,189,902 0.59% 214 0.89% General reserve 11,394,928 11,394,928 25.a Interest income/profit on investment - The City Bank Limited 40,001 - 50,000 shares 118 5,427,240 0.62% 160 0.89% Revaluation reserve for HTM securities 5,700,967 22,044,250 50,001 - 100,000 shares 224 15,925,546 1.82% 219 1.88% Revaluation reserve for HFT securities 394,151,955 406,640,473 Interest on loans against imported merchandise/Murabaha 946,223 1,398,867 100,001 - 1,000,000 shares 249 77,343,836 8.83% 280 9.33% Revaluation reserve for equity Shares (note 20.1) 2,898,367,423 2,793,339,012 Interest on loans against trust receipts 296,197,450 893,839,106 Over 1,000,000 shares 115 694,283,375 79.27% 102 75.70% Asset revaluation reserve (note 20.2) 4,690,126,740 4,711,395,054 Interest on packing credits 21,478,776 8,802,296 56,470 875,798,031 100.00% 71,874 100.00% 7,999,742,013 7,944,813,717 Interest on Interest on EDF 64,429,415 27,681,297 Interest on house building loans 139,010,323 103,531,608 20.1 Quoted shares were valued at market price as per guidelines of Bangladesh Bank and due to valuation at Interest on industrial credits 2,854,175,493 2,615,896,914 17.5 Consolidated Capital Adequacy Ratio market price, revaluation reserve for equity shares were created. As the revaluation reserve for equity shares is Interest on transport loans 102,993,438 87,153,310 unrealised gain, this is booked as a component of shareholders' equity. Interest on lease finance/izara 3,381,313 6,782,705 As per Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for banks in line Interest on demand loans 226,584,696 206,812,948 with Basel III), all scheduled banks are required to calculate Capital Adequacy Ratio based on ‘Solo’ basis Interest on payment against documents 4,332,433 4,189,211 as well as on ‘Consolidated’ basis. Capital Adequacy Ratio is calculated in accordance with the phase-in arrangements for Basel III implementation in 2015 and in accordance with Basel II in 2014. All amounts are 20.2 In the year 2014, land and buildings of the Bank were revalued at fair value by a professional surveyor which Interest on cash credits/bai-muajjal 2,339,988,094 1,960,350,341 stated in Taka crores except for those, if any, stated otherwise. was in compliance with regulatory requirement. Interest on hire purchase shirkatul melk 8,601,069 10,194,131 Interest on fully and partly secured overdrafts 357,441,827 110,867,036 2015 2014 Interest on consumer credit schemes 308,541 28,910 Common Equity Tier 1 Capital (CET1) Taka in crore Taka in crore Movement of assets revaluation reserve Interest on small and medium enterprise loans 1,038,546,431 870,939,523 Opening balance 4,711,395,054 3,692,068,870 Interest on staff loans 140,612,384 104,695,549 Paid up capital 875.80 834.09 Addition during the year - 1,030,989,644 Interest on documentary bills purchased 901,249,751 402,272,069 Non-repayable share premium account 66.09 108.21 Adjustment during the year (21,268,314) (11,663,460) Interest on credit cards 1,349,489,249 1,040,127,165 Statutory reserve 500.28 410.39 Closing balance 4,690,126,740 4,711,395,054 Interest on cash incentives 1,900,000 37,369,792 General reserve 1.14 1.14 Interest on city drive 36,249,438 39,583,171 Retained earnings (note 21) 215.97 80.18 21. Consolidated surplus in profit and loss account Interest on city solution 996,600,073 1,025,918,013 Dividend equalization reserve - - Interest on city express 311,674,340 309,683,736 Minority interest in subsidiaries 0.25 0.30 The City Bank Limited (note 21.a) 3,087,740,110 1,646,077,481 Interest on double loans 2,039,704 3,457,743 1,659.53 1,434.32 Interest on short term loan 3,502,576,573 3,635,720,322 Regulatory Adjustments / Deductions from CET1 Post acquisition retained surplus from City Brokerage Limited (958,958,237) (900,430,509) Total interest/profit on loans and advances/investments 14,700,807,034 13,507,295,763 Deferred tax assets (68.83) - Non-controlling interest 35,961 33,766 Less: Allowable rebate for Good Borrower (note 25.a.1) 20,000,000 - 20% of Excess Investment in equity of other banks, FI and Ins. Co. (66.83) - (958,922,276) (900,396,743) Total interest/profit on loans and advances/investments Book value of goodwill and value of any contingent assets which are shown (0.86) (1.04) after rebate for good borrower 14,680,807,034 13,507,295,763 as assets Post acquisition retained surplus from City Bank Capital Resources Limited 74,474,785 86,914,267 1,523.01 1,433.28 Non-controlling interest (4,965) (5,794) Interest on balance with other banks and financial institutions 16,474,061 182,149,064 74,469,820 86,908,473 Interest on call loans 625,917,459 335,551,778 Tier 2 Capital Interest on foreign bank accounts 1,560,349 4,070,894 Tier-II subordinated bond 300.00 300 Post acquisition retained deficit from CBL Money Transfer Sdn. Bhd. (20,721,593) (25,424,202) Total interest/profit on placement of funds 643,951,869 521,771,736 General provision (note 17.5.2) 163.94 245.03 Non-controlling interest 2,653,375 3,254,298 15,324,758,903 14,029,067,499 Assets revaluation reserve (up to 50%) 235.57 235.57 (18,068,218) (22,169,904) Revaluation reserve for equity instruments (up to 10%) 28.27 28.27 25.a.1 Provision for rebate to good borrower Revaluation reserve for HTM securities (up to 50%) 1.10 1.10 Add: Foreign exchange revaluation effect (25,512,762) (8,615,301) Revaluation reserve for HFT (up to 50%) 20.33 20.33 2,159,706,674 801,804,006 Provision for rebate to the eligible good borrowers has been maintained as per Bangladesh Bank, BRPD circular 749.21 830.30 letter no. 3 dated 16 February 2016. Regulatory Adjustments / Deductions from Tier 2 capital 21.a Movement of surplus in profit and loss account-The City Bank Limited 20% of Tier-II subordinated bond (60.00) - 26. Consolidated interest/profit paid on deposits, borrowings etc. 20% of revaluation reserve for fixed assets and securities (57.05) - Opening balance 1,646,077,481 686,312,590 632.16 830.30 Transfer from asset revaluation reserve (note 21.a.1) 21,268,314 11,663,460 The City Bank Limited (note 26.a) 9,818,866,758 8,906,622,116 Total capital 2,155.17 2,263.57 Profit for the year 3,578,882,069 2,214,940,582 City Brokerage Limited 270,275,333 312,757,272 Transfer to statutory reserve (898,922,614) (719,202,007) CBL Money Transfer Sdn. Bhd. 3,262,483 330,325 Total assets 21,420.54 17,692.51 Transfer to paid up capital for issue of bonus shares (1,259,565,140) (547,637,144) 10,092,404,574 9,219,709,713 Total risk weighted assets (note 17.5.1) 16,058.15 15,214.36 Closing balance 3,087,740,110 1,646,077,481 Inter-company transactions Required capital (10% of risk weighted assets) 1,605.82 1,521.44 (260,101,282) (283,831,142) Surplus 549.35 742.14 Profit for the year includes net deferred tax income of Taka 672,989,539 which is not distributable as dividend as (6,239,407) (20,921,401) per BRPD circular no. 11 dated 12 December 2011. (3,200,196) (239,276) Total Capital Ratio 13.42% 14.88% (269,540,885) (304,991,819) T-1 Capital Ratio 9.48% 9.43% 9,822,863,689 8,914,717,894 Leverage Ratio 6.64% 7.96% 21.a.1 As per BAS 16 "Property, Plant and Equipment" revaluation surplus is transferred directly to retained earnings Liquidity Coverage Ratio 163.34% 135.84% when the surplus is realised. The whole surplus will be realised on the retirement or disposal of the assets. 26.a Interest/profit paid on deposits, borrowings etc. - The City Bank Limited Net Stable Funding Ratio 100.99% 152.59% Some surplus will be realised as the assets are used by the user and the amount of surplus realised is the difference between depreciation based on the revalued carrying amount of the assets and depreciation based a) Interest/profit paid on deposits: 17.5.1 Risk weighted assets on the assets on its original cost. The realised revaluation surplus is to be transferred to retained earnings Savings bank deposits 949,507,716 732,191,015 directly. In accordance with BAS 16, transfer of Taka 21,268,314 (2014: 11,663,460) from revaluation surplus to Mudaraba/Manarah savings deposits 45,786,835 45,440,116 surplus in profit and loss account was made. A. Credit Risk Short notice deposits 461,438,137 562,775,791 On-Balance sheet 11,574.70 9,907.57 22. Non controlling interest Mudaraba short notice deposits 5,399,058 180,891 Off-Balance sheet 1,540.60 2,314.86 Fixed deposits 5,994,122,736 5,912,418,504 13,115.30 12,222.43 Share capital 9,709,993 11,797,393 Mudaraba term deposits 121,372,216 149,679,373 B. Market Risk 1,300.14 1,548.09 Surplus in profit and loss account/retained earnings (7,175,214) (8,747,509) Deposits under scheme 565,597,152 441,165,700 C. Operational Risk 1,642.71 1,443.84 2,534,779 3,049,884 Mudaraba monthly benefit scheme 4,311,944 1,340,633 Total Risk weighted assets (A+B+C) 16,058.15 15,214.36 Repurchase agreement (REPO) 173,291,084 149,371,568 23. Contingent liabilities b) Interest/profit paid on local bank accounts 971,017,849 543,675,159 17.5.2 General provision maintained against unclassified loan/investments & c) Interest/profit paid on borrowing from Bangladesh Bank 159,498,977 105,390,803 outstanding off-balance sheet exposures 23.1 Letters of guarantee d) Interest paid on borrowings from outside Bangladesh for off-shore banking 367,523,054 262,992,563 9,818,866,758 8,906,622,116 General provision maintained against unclassified loan/investments (note 161.20 195.97 Local 5,706,806,518 3,964,490,041 16.a.1) 27. Consolidated investment income General provision maintained against outstanding off balance sheet 51.16 49.06 Foreign 1,646,228,839 2,866,526,189 exposures (note 16.a.2) Shipping guarantee 3,110,962,890 6,446,219,464 212.36 245.03 10,463,998,247 13,277,235,694 The City Bank Limited (note 27.a) 4,390,718,045 2,789,919,779 Margin on guarantee (245,515,336) (187,569,174) City Brokerage Limited 61,691,630 12,538,521 1.25% of Risk weighted assets for credit risk* 163.94 152.78 10,218,482,911 13,089,666,520 City Bank Capital Resources Limited 66,168,653 51,116,882 4,518,578,328 2,853,575,182 Money for which the Bank is contingently liable in respect of guarantees given favouring: Inter-company transactions Eligible amount of general provision 163.94 245.03 City Bank Limited with City Bank Capital Resources Limited 8,500,000 6,053,435 Government 3,538,130,912 3,166,027,145 4,527,078,328 2,859,628,617 *In accordance with Basel III, general provisions/general loan-loss reserve eligible for inclusion in Tier 2 is Banks and other financial institutions 3,814,904,444 3,150,210,581 limited to a maximum 1.25% of credit risk weighted assets. Others 3,110,962,890 6,960,997,968 27.a Investment income - The City Bank Limited 10,463,998,247 13,277,235,694 Margin on guarantee (245,515,336) (187,569,174) Interest on treasury bills/Reverse repo/bonds 2,311,893,699 2,046,820,730 10,218,482,911 13,089,666,520 Interest on debentures 117,892 292,100 Dividend on shares 208,184,514 124,895,827 Gain on Government securities 1,814,620,446 210,672,034 Gain on sale of shares and debentures 55,901,494 407,239,088 4,390,718,045 2,789,919,779 The City Bank Limited Report and Financial Statements as at and for the year ended 31 December 2015

28. Consolidated commission, exchange and brokerage 36.a Directors' fees - The City Bank Limited 42.a Payments for other operating activities - The City Bank Limited 2015 2014 2015 2014 2015 2014 Taka Taka Taka Taka Taka Taka The City Bank Limited (note 28.a) 1,884,279,518 1,769,286,388 Rent, taxes, insurance and electricity 632,414,850 553,598,077 City Brokerage Limited 175,169,749 176,176,307 Meeting fees 1,244,000 1,145,000 Legal expenses 23,772,598 21,748,062 City Bank Capital Resources Ltd 38,455,879 13,848,302 Postage, stamp and telecommunication 61,153,752 73,848,683 CBL Money Transfer Sdn. Bhd. 53,531,796 15,556,241 As per BRPD Circular No. 3, dated 18 January 2010, each director was entitled to have Taka 5,000 as honorarium Advertisement expenses 76,462,735 112,868,002 2,151,436,942 1,974,867,238 for attending each meeting till 3 October 2015. After issuing Bangladesh Bank's Circular, BRPD Circular No. 11, Directors' fees 1,469,000 670,000 Inter-company transactions dated 4 October 2015, directors' entitlement as honorarium for attending each meeting was revised to Taka 8,000. Auditors' fees 870,750 (2,246,850) City Bank Capital Resources Limited with The City Bank Limited (8,500,000) (6,053,435) Repair to Bank's assets 313,705,267 265,084,812 37. Consolidated depreciation and repair City Bank Limited with CBL Money Transfer Sdn. Bhd. (285,275) - Other expenses 1,192,768,883 936,510,181 2,142,651,667 1,968,813,803 2,302,617,835 1,962,080,967 The City Bank Limited (note 37.a) 751,381,043 655,357,809 43. Consolidated increase/ (decrease) of other assets City Brokerage Limited (note 37.b) 9,975,950 11,197,329 28.a Commission, exchange and brokerage - The City Bank Limited City Bank Capital Resources Limited (note 37.c) 3,324,043 3,009,326 The City Bank Limited (note 43.a) (1,129,322,478) (2,648,852) CBL Money Transfer Sdn. Bhd. 3,211,776 2,408,066 Letters of credit 229,563,471 224,202,119 City Brokerage Limited 137,565,746 (118,230,430) 767,892,812 671,972,530 Letters of guarantee 85,294,497 92,913,745 City Bank Capital Resources Limited (15,429,609) 30,849,457 Export bills 31,064,501 23,815,108 CBL Money Transfer Sdn. Bhd. 8,917,254 (14,899,823) 37.a Depreciation and repair of bank's assets - The City Bank Limited Bills purchased 46,783 160,694 (998,269,087) (104,929,648) Accepted bills 168,227,965 203,560,306 Adjustment for consolidation-The City Bank Ltd. 39,228,931 - Depreciation 459,605,305 386,436,430 OBC, IBC etc. 458,681 442,498 (959,040,156) (104,929,648) PO, DD, TT, TC, etc. 916,737 1,274,430 Repairs and maintenance: NRB operation 15,991,771 16,251,605 43.a Increase/ (decrease) of other assets - The City Bank Limited Premises 19,469,773 17,663,904 Other fees and charges (note 28.a.1) 555,506,731 544,389,975 Furniture and fixtures 2,866,288 2,829,507 Other commissions 20,000,482 8,391,350 Stationery and stamps 1,023,874 541,744 Office equipment-IT Support 62,846,064 54,146,364 1,107,071,619 1,115,401,830 Advance deposits and advance rent (60,429,338) (43,205,654) Vehicle 201,437,668 184,400,176 Exchange gain including gain from foreign currency dealings (note 28.a.2) 777,207,899 653,884,558 Prepaid expenses (1,272,211) 9,817,654 Others 5,155,945 9,881,428 1,884,279,518 1,769,286,388 Branch adjustment account (6,310,077) - 291,775,738 268,921,379 Account receivables (1,065,098,970) 2,117,326 See Annexure D for details of depreciation. 751,381,043 655,357,809 28.a.1 Other fees and charges Advance against advertisement 2,322,982 (2,545,400) Receivable from City Brokerage Ltd. 1,700 3,478 37.b Depreciation and repair - City Brokerage Limited Service and other charges 529,649,212 466,802,042 Receivable from City Bank Capital Resources Ltd. (37,387,858) (18,461,674) Structured finance fee 22,937,723 70,809,589 Intangible assets 37,827,420 37,774,634 Depreciation: Commitment fee 2,919,796 6,778,344 Advance payment to CBL Money Transfer - 11,309,040 Furniture and fixtures 2,404,668 2,056,562 555,506,731 544,389,975 (1,129,322,478) (2,648,852) Office equipment 3,606,080 5,295,428 Vehicle 957,895 957,895 28.a.2 Net exchange gain 44. Consolidated increase/ (decrease) of other liabilities Software 264,096 145,140 7,232,739 8,455,025 Exchange gain 779,553,511 657,021,587 The City Bank Limited (note 44.a) (676,783,892) (1,398,579,847) Repairs and maintenance: Exchange loss (2,345,612) (3,137,029) City Brokerage Limited (2,889,048) (158,370,444) Furniture and fixtures/office equipment 2,643,090 2,458,610 777,207,899 653,884,558 City Bank Capital Resources Limited 17,492,910 (13,965,396) Vehicle 100,121 283,694 29. Consolidated other operating income CBL Money Transfer Sdn. Bhd. 18,729,507 4,083,023 2,743,211 2,742,304 (643,450,523) (1,566,832,664) 9,975,950 11,197,329 The City Bank Limited (note 29.a) 1,003,435,729 857,064,973 Adjustment for consolidation-The City Bank Ltd. (52,276,191) - City Brokerage Limited 1,295,252 12,022,816 (695,726,714) (1,566,832,664) 37.c Depreciation and repair - City Bank Capital Resources Limited City Bank Capital Resources Ltd 4,070,935 29,591 CBL Money Transfer Sdn. Bhd. 2,712,403 2,296,239 44.a Increase/ (decrease) of other liabilities - The City Bank Limited Depreciation: 1,011,514,319 871,413,619 Furniture and fixtures 629,097 146,856 29.a Other operating income - The City Bank Limited Loans written off and waived (1,205,978,780) (1,604,872,277) Office equipment 282,837 463,247 Interest suspense account 351,972,982 309,791,073 Vehicle 1,046,102 917,880 Rental income 39,946 76,250 Other provision (138,494,798) (66,240,476) Software 328,460 328,464 Swift recoveries 32,491,240 27,476,907 Branch adjustment account (7,931,141) (24,685,973) 2,286,496 1,856,447 Profit from sale of fixed assets - 478,551 Payable to CBL Money Transfer SDN BHD 2,230,665 959,749 Repairs and maintenance: Credit card income (note 29.a.1) 876,421,198 739,227,787 Others 321,417,180 (13,531,943) Furniture and fixtures/office equipment 769,602 67,200 Rebate received from foreign banks 59,241,686 33,706,262 (676,783,892) (1,398,579,847) Vehicle 267,945 1,085,679 Others 35,241,659 56,099,216 1,037,547 1,152,879 1,003,435,729 857,064,973 45. Consolidated Earnings per share (EPS) 3,324,043 3,009,326

29.a.1 Credit card income (i) Net profit after tax - Taka 3,593,116,965 1,708,703,707 38. Consolidated other expenses (ii) Weighted average number of shares 875,798,031 875,798,031 Card issue fees 210,967,079 143,924,939 Consolidated earnings per share - Taka (i/ii) 4.10 1.95 The City Bank Limited (note 38.a) 1,219,574,521 975,630,311 Late payment fees 116,244,452 101,804,872 City Brokerage Limited 15,299,735 12,003,335 Merchant commission 430,853,097 382,353,152 Bonus factor has been considered for previous year's EPS computation. City Bank Capital Resources Limited 3,025,194 3,543,689 Interchange fees 40,950,947 31,929,023 CBL Money Transfer Sdn. Bhd. 6,049,768 2,050,346 Mark-up, excess limit, cash advance fees etc. 77,405,623 79,215,801 45.a Earnings per share (EPS) - The City Bank Limited 1,243,949,218 993,227,681 876,421,198 739,227,787 (i) Net profit after tax - Taka 3,578,882,069 2,214,940,582 38.a Other expenses - The City Bank Limited 30. Consolidated salaries and allowances (ii) Weighted average number of shares 875,798,031 875,798,031 Earnings per share - Taka (i/ii) 4.09 2.53 Entertainment 13,795,529 11,715,159 The City Bank Limited 3,166,373,641 2,846,791,183 Books, magazines and newspapers etc. 1,194,766 977,752 City Brokerage Limited 47,771,531 44,154,724 Bonus factor has been considered for previous year's EPS computation. Medical 573,929 5,455,202 City Bank Capital Resources Limited 31,418,196 23,681,576 Cash carrying charges 18,480,205 11,313,521 CBL Money Transfer Sdn. Bhd. 24,273,817 22,200,508 Subscription to institutions 8,028,032 6,203,547 3,269,837,185 2,936,827,991 46. Segment reporting 2015 Donations 30,996,495 31,287,844 Conventional Islamic Offshore Total Professional fees 9,274,882 16,802,075 31. Consolidated rent, taxes, insurance, electricity etc. Taka Taka Taka Taka Travelling expenditure and conveyance - Staff 38,138,358 35,703,602 Total operating profit (profit before Business Expansion Cost 261,073,543 152,387,630 The City Bank Limited (note 31.a) 674,541,834 601,600,416 unallocated expenses and tax) 12,293,324,402 318,593,759 172,407,276 12,784,325,437 Annual general meeting 5,919,237 22,117,779 City Brokerage Limited (note 31.b) 29,956,598 35,897,651 Allocated expenses (6,054,476,617) (45,237,081) (11,498,671) (6,111,212,369) Guard Salary 110,905,555 89,233,947 City Bank Capital Resources Limited 4,774,062 3,025,114 Provision against loans and advances (2,013,353,918) (116,523,313) (17,622,769) (2,147,500,000) Security expenses 26,030,522 22,308,487 CBL Money Transfer Sdn. Bhd. 16,359,076 7,680,901 Provision against off-balance sheet (18,846,592) (1,685,047) (468,361) (21,000,000) Business Process Outsourcing-Online 46,344,266 37,515,095 725,631,570 648,204,082 exposures Vehicle rental expenditure 15,477,000 11,393,250 Profit before tax 4,196,647,275 155,148,318 142,817,475 4,494,613,068 Staff activities and welfare 13,569,136 8,723,450 Net profit 3,280,916,276 155,148,318 142,817,475 3,578,882,069 31.a Rent, taxes, insurance, electricity etc. - The City Bank Limited Washing and cleaning 25,788,334 21,878,412 Segment assets 185,460,466,757 18,966,956,242 10,412,995,494 214,840,418,493 Credit card (note 38.a.1) 308,440,130 293,171,720 Segment liabilities 185,460,466,757 18,966,956,242 10,412,995,494 214,840,418,493 Rent 367,951,062 351,552,180 IT Support & Software maintenance 83,581,910 61,244,822 Rates and taxes 46,230,823 34,504,802 Royalty adjustment 37,827,420 37,827,412 Insurance 136,573,247 118,071,974 CIB Charges 794,930 1,014,060 Power and electricity 123,786,702 97,471,460 47. Related Party Disclosures Remittance charges 247,931 324,799 674,541,834 601,600,416 Fuel 21,348,043 22,590,931 i) Particulars of Directors of the Bank as on 31 December 2015 Others (note 38.a.2) 141,744,368 74,439,815 31.b Rent, taxes, insurance, electricity etc. - City Brokerage Limited 1,219,574,521 975,630,311 Percentage (%) Sl. of shares as at Rent 13,164,712 14,433,541 Name of the persons Designation Present Address 38.a.1 Credit card expenses no. 31 December Rates and taxes 12,262,172 19,151,633 2015 Insurance 319,345 228,300 Card processing and personalisation 28,811,628 37,777,041 1 Mr. Rubel Aziz Chairman House no.8, Road no.62 2.49% Power and electricity 4,210,369 2,084,177 VISA international expenses 65,518,063 55,130,357 Gulshan-2, Dhaka-1212 29,956,598 35,897,651 ATM expenditure - IT support 4,697,288 27,145,824 2 Mr. Aziz Al Kaiser Director Blumingdale 2.91% Other expenditure - cards 209,413,151 173,118,498 24 Dutabas Road 32. Consolidated legal expenses 308,440,130 293,171,720 Baridhara, Dhaka 3 Mr. Hossain Mehmood Director House No-20, Road No-6 2.00% The City Bank Limited (note 32.a) 25,639,943 24,576,045 38.a.2 Others include NRB bank charges and fraud forgeries etc. (Representative of A-One Dhanmondi R/A, Dhaka City Brokerage Limited 660,100 1,067,500 Polymer Limited) City Bank Capital Resources Limited 447,155 317,300 39. Consolidated provision for loans and advances/investments 4 Mr. Hossain Khaled Director Anwar Group of Industries 2.00% 26,747,198 25,960,845 Baitul Hossain Building The City Bank Limited (note 39.a) 2,147,500,000 1,540,000,000 27, Dilkusha C/A, Dhaka-1000. 32.a Legal expenses - The City Bank Limited City Brokerage Limited 769,292 164,589,739 5 Mr. Rajibul Huq Chowdhury Director 688/3, Boro Mogbazar 2.20% 2,148,269,292 1,704,589,739 Dhaka Legal expenses 25,312,011 24,336,366 6 Mr. Deen Mohammad Director 23 Shyamoli, Road No.2, 4.97% Others 327,932 239,679 39.a Provision for loans and advances/investments - The City Bank Limited Mohammadpur, Dhaka-1207 25,639,943 24,576,045 7 Ms. Tabassum Kaiser Director Blumingdale 2.00% Provision for classified loans and advances/investments 2,147,500,000 780,298,403 24 Dutabas Road 33. Consolidated postage, stamps, telecommunication etc. Provision for unclassified loans and advances/investments - 759,701,597 Baridhara, Dhaka 2,147,500,000 1,540,000,000 8 Mr. Rafiqul Islam Khan Director House no.67, Road no.8/A 2.01% The City Bank Limited (note 33.a) 70,980,951 80,017,694 Dhanmondi, Dhaka City Brokerage Limited (note 33.b) 3,473,222 3,803,895 40. Consolidated provision for taxation 9 Mr. Mohammad Shoeb Director 23 Shyamoli, Road No.2, 2.50% City Bank Capital Resources Limited 611,353 534,481 Mohammadpur, Dhaka-1207 CBL Money Transfer Sdn. Bhd. 1,536,293 1,334,952 Current tax: 10 Mrs. Syeda Shaireen Aziz Director House no.8, Road no.62 2.01% 76,601,819 85,691,022 The City Bank Limited (note 40.a) 1,588,720,538 1,531,252,396 Gulshan-2, Dhaka-1212 City Brokerage Limited 33,742,657 35,906,835 11 Mr. Tanjib-Ul Alam Independent House No. 83, Road No.12A Nil 33.a Postage, stamps, telecommunication etc. - The City Bank Limited City Bank Capital Resources Limited 23,542,779 18,206,886 Director Dhanmondi R/A, Dhaka-1209 1,646,005,974 1,585,366,117 12 Mr. Sohail R K Hussain CEO & MD The City Bank Ltd. Nil Postage/courier service 19,131,749 24,562,871 Deferred tax: 136 Gulshan Avenue, Gulshan-2 Telegram, telex, fax & swift charge 2,251,169 13,359,032 The City Bank Limited (note 40.a) (672,989,539) (150,182,944) Dhaka-1212 Telephone - office 42,663,613 35,915,405 City Bank Capital Resources Limited (4,365,848) - Telephone - residence 6,934,420 6,180,386 (677,355,387) (150,182,944) For directors interest in different entities refer to Annexure-F. 70,980,951 80,017,694 Income tax on profit 968,650,587 1,435,183,173 33.b Postage, stamps, telecommunication etc. - City Brokerage Limited

40.a Provision for Taxation - The City Bank Limited ii) Postage 11,268 44,042 Related party transactions Telegram, telex, fax and e-mail 2,766,805 3,050,981 Current tax: During the period 1 January 2015 to 31 December 2015, the Bank concluded business deals with the following Telephone bill 695,149 708,872 Provision for income tax has been made according to Income Tax Ordinance, 1984. During the year, an amount of organizations in which the directors had interest: 3,473,222 3,803,895 Taka 1,588,720,538 for prior year (2014: Taka 1,531,252,396) has been kept as provision for income tax. Transaction value for the Balance outstanding 34. Consolidated stationery, printing and advertisements etc. Name of Nature of period ended as at Relationship Deferred tax: organisation transactions 31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014 The City Bank Limited (note 34.a) 183,857,261 201,469,360 Deferred tax is provided using the Balance sheet method for timing difference arising between the tax base of Taka Taka Taka Taka City Brokerage Limited 1,753,434 1,472,383 assets and liabilities and their carrying values for reporting purposes as per Bangladesh Accounting Standard City Brokerage Subsidiary Share Capital - - 1,600,000,000 1,600,000,000 City Bank Capital Resources Limited 1,039,777 972,526 (BAS) - 12. During the year, net amount of Taka 672,989,539 (2014: Taka 150,182,944) has been recognised as Ltd. Company CBL Money Transfer Sdn. Bhd. 1,202,184 1,751,366 deferred tax income. City Brokerage Subsidiary Loan 260,015,000 229,286,164 2,444,712,644 2,445,596,363 187,852,656 205,665,635 Ltd. Company The charge for taxation is based upon profit for the year comprises: City Brokerage Subsidiary Interest on 260,101,281 283,831,142 N/A N/A 34.a Stationery, printing and advertisements etc. - The City Bank Limited Ltd. Company Loan Current tax on taxable income @ 40% 1,708,720,538 1,414,752,396 City Brokerage Subsidiary Inter Company 12,130,656 10,106,252 - 1,700 Office and security stationery (note 34.a.1) 93,912,750 65,669,466 Adjustment for prior year (120,000,000) 116,500,000 Ltd. Company Expenses 1,588,720,538 1,531,252,396 City Bank Capital Subsidiary Computer consumable stationery 22,059,171 26,766,556 Share Capital - - 750,000,000 750,000,000 Resources Ltd company Publicity and advertisement (note 34.a.2) 67,885,340 109,033,338 Net deferred tax liability/(asset) originated for temporary differences (672,989,539) (150,182,944) City Bank Capital Subsidiary Interest on 6,239,407 20,921,401 N/A N/A 183,857,261 201,469,360 Income tax on profit 915,730,999 1,381,069,452 Resources Ltd company Deposits City Bank Capital Subsidiary Inter Company 31,351,478 18,679,387 42,068,759 18,491,674 34.a.1 Office and security stationery 41. Consolidated receipts from other operating activities Resources Ltd company Expenses The City Bank Limited (note 41.a) 5,298,980,716 3,234,838,731 CBL Money Office stationery 65,840,844 45,391,559 Subsidiary Transfer Sdn. Share Capital - - 63,080,473 63,080,473 Security stationery 28,071,906 20,277,907 City Brokerage Limited 51,926,209 849,247 company City Bank Capital Resources Limited 57,504,146 38,390,587 Bhd. 93,912,750 65,669,466 CBL Money CBL Money Transfer Sdn. Bhd. 2,712,403 2,160,786 Subsidiary Transfer Sdn. Loan 2,677,362,418 564,507,827 117,170,675 39,182,363 5,411,123,474 3,276,239,351 company 34.a.2 Publicity and advertisement Bhd. CBL Money 41.a Receipts from other operating activities - The City Bank Limited Subsidiary Interest on Advertisement Sponsorship-Magazine 22,021,701 46,330,171 Transfer Sdn. 2,914,921 239,276 N/A N/A Company Loan Advertisement Sponsorship-Others 9,743,864 29,003,253 Bhd. Advertisement-Television and radio 20,166,925 11,384,057 Interest on bonds, debentures and treasury bills 4,295,544,987 2,377,773,758 CBL Money Subsidiary Inter Company Advertisement-Miscellaneous 15,952,850 22,315,857 Rent recovered 39,946 76,250 Transfer Sdn. 51,882,447 387,422,873 3,190,414 959,749 Postage/telex/fax/swift charge recoveries 32,491,240 27,476,907 company Expenses 67,885,340 109,033,338 Bhd. Income from sale of Bank's property - 478,551 Janata Director Insurance Credit card income 876,421,198 739,227,787 Insurance 9,072,010 7,322,370 N/A N/A 35. Chief Executive's salary and fees Interest Coverage Rebate received from foreign banks 59,241,686 33,706,262 Company Ltd. Miscellaneous earnings 35,241,659 56,099,216 City General Basic salary 7,926,750 7,200,000 Director Insurance Insurance 6,333,162 8,722,752 N/A N/A Festival bonus and other allowances 8,482,675 7,846,921 5,298,980,716 3,234,838,731 Interest Coverage Company Ltd. 16,409,425 15,046,921 Phoenix 42. Consolidated payments for other operating activities Director Insurance 36. Consolidated Directors' fees Insurance 15,307,700 13,042,117 N/A N/A Interest Coverage Company Ltd. The City Bank Limited (note 36.a) 1,244,000 1,145,000 The City Bank Limited (note 42.a) 2,302,617,835 1,962,080,967 City Brokerage Limited 80,000 140,000 City Brokerage Limited 52,282,866 438,894,640 City Bank Capital Resources Limited. 153,969 161,000 City Bank Capital Resources Limited 10,106,780 9,230,008 CBL Money Transfer Sdn. Bhd. - 47,314 CBL Money Transfer Sdn. Bhd. 25,407,876 11,409,656 1,477,969 1,493,314 2,390,415,357 2,421,615,271 The City Bank Limited Report and Financial Statements as at and for the year ended 31 December 2015

The ALCO's primary function is to formulate policies and guidelines for the strategic management of the bank 49.8 Credit Rating of the Bank iii) Statement of debts due by companies or firms in which the Directors (including Ex-Directors) of the Bank have interests as on 31 using pertinent information that has been provided through the ALCO process together with knowledge of the December 2015 individual businesses managed by members of the committee. ALCO regularly reviews the Bank’s overall As per the BRPD instruction circular no.6 dated 5 July 2006, the Bank has done its credit rating by Credit asset and liability position, forward looking asset and liability pipeline, overall economic position, the Banks’ Rating Agency of Bangladesh Limited (CRAB) based on the financial statements dated 31 December 2014. A) Statement of funded debts due by the Directors of the bank company as at 31 December 2015 liquidity position, capital adequacy, balance sheet risk, interest risk and makes necessary changes in its mix (Figures in Lac Taka) as and when required. Particulars Date of Rating Long term Short term Rating Valid Sl. Names of Directors Present Name of the Types of Outstanding as Classification Value of eligible security Entity Rating 25-Jun-15 AA2 ST-2 30-Jun-16 No. status with institution facility at 31 December status The Bank maintains specified liquidity and funding ratio limits to ensure financial flexibility to cope with Very strong capacity & Strong capacity for the bank 2015 unexpected future cash demands. ALCO monitors the liquidity and funding ratios on an ongoing basis and very high quality timely repayment as on 31-12-2006 ascertains liquidity requirements under various stress situations. In order to ensure liquidity against all Foreign Currency commitments, the Bank reviews the behaviour patterns of liquidity requirements. The Bank has an approved 1 Mr. Rubel Aziz Chairman Self Credit 8.18 Unclassified Marked as lien of $ .25 lac in Liquidity Contingency Plan (LCP) which is reviewed and updated on an annual basis by ALCO. All regulatory requirements including CRR, SLR and RWA are reviewed by ALCO. Card RFCD A/C & Tk. 2.78 lac in FDR . 49.9 Fraud and administrative error 2 Mr. Aziz Al Kaiser Director Self Credit 3.50 -Do- Marked as lien of $ 0.10 lac in Card RFCD A/C & Tk. 3.00 lac in FDR 49.1.3 Foreign exchange risk 3 Mr. Hossain Director Self Credit 0.63 -Do- Marked as lien of $ 0.05 lac in During the year 2015, total number and amount of fraud forgeries, detected in the Bank were 18 and TK 11,324,629.42 respectively. Out of 18 cases, 5 instances were occurred by bank’s employees and the Mehmood Card ERQ A/C Foreign exchange risk is defined as the potential change in earnings due to change in market prices.The 4 Mrs. Syeda Shaireen Director Self Credit 7.11 -Do- Marked as lien of Tk. 7.22 lac rests were administrative errors. Out of total fraud, TK 2,220,183 had no financial impact and TK 5,962,870 foreign exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the customers Aziz Card in FDR had already been recovered and adequate provisions have been maintained against the rest amount. against underlying L/C commitments and other remittance requirements. 5 Mr. Mohammad Director Self Credit 1.63 -Do- Marked as lien of $ 0.04 lac in Administrative actions have already been taken against alleged officials and out of 18 instances, 15 cases Shoeb Card RFCD A/C have already been settled. 6 Ms. Tabassum Director Self Credit 0.01 -Do- Marked as lien of $ 0.05 lac in Treasury Department independently conducts the transactions and the back office of treasury is responsible for verification of the deals and passing of their entries in the books of account.All foreign exchange Kaiser Card RFCD A/C & Tk. 3.00 lac in FDR 49.10 Number of employees 7 Mr. Hossain Khaled Director Self Credit 2.56 -Do- Marked as lien of $ 0.05 lac in transactions are revalued at Mark-to-Market rate as determined by Bangladesh Bank at the month-end. The Card RFCD A/C & Tk. 3.00 lac in FDR Bank maintains various nostro accounts in order to conduct operations in different currencies including TK. The senior management of the Bank sets limits for handling nostro account transactions. All Nostro accounts The number of employees engaged for the whole year or part thereof who received a total remuneration of B) Statement of other funded debts due by the Directors of the bank company as at 31 December 2015 are reconciled on a monthly basis and outstanding entries beyond 30 days are reviewed by the management TK 36,000 p.a. or above were 2,716 at the end of December 2015 as against 2,535 at the end of December (Figures in Lac Taka) for its settlement. 2014. Sl. Names of Directors Present Name of the Types of Outstanding as Classification Value of eligible security 49.11 Previous year's figures have been rearranged, wherever necessary, to conform with the current year's status with institution facility at31 December status As at 31 December 2015, no debit entry was unreconciled for 3 months or more, therefore no provision is presentation. the bank 2015 kept in accordance with FEPD circular no. 677 (13 September 2005).

1 Mr. Deen Director Rupayan Port & STL 4,013.48 Unclassified Registered mortgage of 1,718.50 49.1.4 Internal control and compliance Mohammad Logistic Services decimal land and Registered Ltd charge on fixed and floating Effective internal controls are the foundation of safe and sound banking. A properly designed and consistently assets enforced system of operational and financial internal control helps a bank’s management safeguard the bank’s resources, produce reliable financial reports and comply with laws and regulations. Effective internal Managing Director & CEO Director Director Chairman C) Statement of non-funded debts due by the companies or firms in which the Directors of the bank company have interests as at 31 December 2015 control also reduces the possibility of significant errors and irregularities and assists in their timely detection (Figures in lac Taka) when they do occur. Sl. Name of Director Present Name of the Types of Outstanding as Classification Value of eligible security Dhaka, April 28, 2016 Status with Institution Facility at31 December status Internal Control and Compliance (ICC) operates independently as a division consisting three units (Audit & the Bank 2015 Inspection, Monitoring and Compliance) with prime responsibility to determine risks by evaluating overall Business, Operations & Credit Portfolios of the Bank. The key objective of ICC is to assist and guide in Consolidated Liquidity Statement (Analysis of maturity of assets and liabilities) all aspects of the bank using adequate resources for identification of weaknesses and taking appropriate as at 31 December 2015 measures to overcome the same to be a compliant bank. 1 Mr. Hossain Khaled Director Monowar BG 0.12 Unclassified 100% Margin Annexure-A & Mr. Hossain Industries (Pvt) Mehmood Ltd. ICC has a unique reporting line to the Bank’s Board of Directors through the Audit Committee and to the Particulars Up to 1 month 1-3 months 3-12 months 1-5 years More than 5 Total 2 Mr. Hossain Khaled Director Eulon Plastic BG 5.62 -Do- 10% Margin Managing Director & CEO. Thus it acts as a bridge between the board and the Bank’s management. An effective years & Mr. Hossain Private Ltd. organizational structure has been established by exercising durable Internal Control culture within the Bank. Taka Taka Taka Taka Taka Taka Mehmood Assets 3 Mr. Rajibul Huq Director Shahida Trading BG 4.11 -Do- 100% margin 49.1.5 Reputation risk arising from money laundering incidences Cash in hand 6,105,878,822 - - - 9,331,738,510 15,437,617,332 Chowdhury Corporation Balance with other banks and financial institutions 4,253,055,953 10,526,247,247 1,136,672,058 - - 15,915,975,258 D) Statement of funded debts due by the companies or firms in which the Ex-Director of the banking company have interests as at 31 Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent Money at call and short notice - - 5,379,167 90,000,000 - 95,379,167 December 2015 in prevention of money laundering. For mitigating the risks, the Bank has a designated Chief Compliance Investments 7,308,600 851,835,414 5,222,590,034 5,814,810,456 14,120,418,424 26,016,962,928 Amounts in Lac Taka Officer at Head Office and Compliance Officers at branches, who independently review the transactions of the Loans and advances/investments 6,604,302,693 38,312,701,215 49,664,469,920 37,657,953,389 10,775,244,947 143,014,672,164 accounts to verify suspicious transactions. Manuals for prevention of money laundering have been established Sl. Names Present Names of the Types of Outstanding Amount Status of Amount Nature of Remarks Fixed assets including premises, furniture and fixtures - - - - 8,172,221,437 8,172,221,437 and Transaction profile has been introduced. Training is continuously given to all the category of Officers and of Ex- status institutions facility as at 31 of classification of share security Other assets 1,442,275,821 1,114,781,218 1,273,070,277 346,524,993 583,064,225 Executives for developing awareness and skill for identifying suspicious activities/transactions. 4,759,716,534 Directors with the December provision holding with value Non banking assets - - - 792,824,667 - 792,824,667 bank 2015 created 1 Mr. Zakaria Ex. A M Traders CC( Pledge) - - Tk. 120.28 - - Money Suit No. 49.1.6 Information technology Total assets (A) 18,412,821,889 50,805,565,094 57,302,181,456 44,702,113,505 42,982,687,543 214,205,369,487 Hossain Director lac, BLW 60/2006. Stayed Choudhury as per High Courts The Bank's IT has gone through a gigantic transformation from where it started. After several years of Liabilities and Mrs. Ordered by FAT No. continuous efforts, standardization of both back-end as well as front-end operations of bank is complete. Now Tier-II subordinated bond - - - 2,400,000,000 600,000,000 3,000,000,000 Hosne Ara 568/06. Account has through wide array of customizable products and services, IT can bring about equivalent contribution to profits. Borrowings from other banks, financial 6,600,003,246 5,766,939,963 7,636,482,405 899,059,479 1,177,504,500 22,079,989,593 Begum been written off. institutions and agents Ahsan Traders CC( Pledge) - - BLW - - Artha Execution Relevant hardware, software and networking equipment is in place to support operations of online branches, Deposits 14,448,095,929 37,534,264,249 22,644,604,598 3,809,159,445 58,625,103,780 137,061,228,001 Case No. 152/05. internet banking, SMS service, call centre, Tele Banking, POS and ATM network. These devices are providing Other accounts 51,600,073 1,496,402,126 4,796,269,108 - - 6,344,271,307 The proceeding of superior performance resulting in better end-user satisfaction. To ensure uninterrupted and smooth customer Provision and other liabilities 345,833,312 2,585,203,063 2,352,718,777 8,408,691,945 7,443,796,056 21,136,243,153 the Execution Suit is service in all branches and SME centres, IT division continuously work on performance tuning for database Total liabilities (B) 21,445,532,560 47,382,809,401 37,430,074,888 15,516,910,869 67,846,404,336 189,621,732,054 Stayed by the Order and application, networking and server hardware on regular basis. Continuous investments are going on to Net liquidity gap (A - B) (3,032,710,671) 3,422,755,693 19,872,106,568 29,185,202,636 (24,863,716,793) 24,583,637,433 of High Court Division. do the necessary upgradation on hardware and software to increase the Bank's centralised online banking Tk. 50.29 lac was and other peripheral service requirements partially recovered on As at 31 December 2014 15.10.2014. The a/c 49.2 Audit Committee Particulars Up to 1 month 1-3 months 3-12 months 1-5 years More than 5 Total will be settled as per years Taka Taka Taka Taka Taka Taka direction of the Court. According to BRPD circular no.12 (23 December 2002), all banks are advised to constitute an audit Assets 2 Mr. A.B.M. Ex. M/s Term Loan - - Tk. 41.95 lac, - 20 post Artha Ex. 93/05. The committee comprising members of the Board. The audit committee will assist the Board in fulfilling its Cash in hand 3,443,260,873 - - - 7,485,294,201 10,928,555,074 Feroj Director R.P.Electrical BLW dated Court has passed oversight responsibilities including implementation of the objectives, strategies and overall business plans set Balance with other banks and financial institutions 1,876,940,953 2,111,137,309 1,203,383,684 - - Industries cheque an order regarding by the Board for effective functioning of the bank. The committee will review the financial reporting process, 5,191,461,946 detention to the the system of internal control and management of financial risks, the audit process, and the bank's process Money at call and short notice 1,899,400,000 - 8,979,167 90,000,000 - 1,998,379,167 convict borrower for monitoring compliance with laws and regulations and its own code of business conduct. Investments 7,448,600 2,259,890,801 2,678,810,373 10,817,332,105 14,663,899,936 30,427,381,815 by civil jail for 6(six) Loans and advances/investments 9,184,811,007 38,904,335,546 30,082,227,967 31,637,282,383 6,681,080,155 116,489,737,058 month from the date The Bank, being a listed entity bank, have a board of directors from whom to select an audit committee. The Fixed assets including premises, furniture and fixtures - - - - 8,144,060,566 8,144,060,566 of Arrest. Audit Committee of the Board of Directors consist of four members of the Board, which meets on a regular Other assets 649,912,892 940,505,863 1,440,076,483 269,769,305 60,688,538 3 Mr.Saleh Ex. Saleh CC( Hypo) Tk. 38.71 lac - BL - a) Hypo. of Artha Ex.Case No. 3,360,953,081 basis with the senior management of the Bank, and with the internal and external auditors to consider and Ahmed Director Fashions Ltd. machineries 07/09. Property Non banking assets - - - 384,551,746 - 384,551,746 review the nature and scope of the reviews and the effectiveness of the systems of internal control and Chowdhury installed in vested in favor of Total assets (A) 17,061,774,325 44,215,869,519 35,413,477,674 43,198,935,539 37,035,023,396 176,925,080,453 compliance as well as the financial statements of the Bank. All audit reports issued by internal and external the factory bank on 22.11.2010. auditors and all inspection/audit reports issued by Bangladesh Bank are sent to the Audit Committee. worth Tk. u/s 33(7) of Artha Rin Liabilities 24.00 lac. Adalat Ain,2003 but 49.2.1 Particulars of audit committee Tier-II subordinated bond - - - 2,400,000,000 600,000,000 3,000,000,000 b) Mortgage next proceedings is Borrowings from other banks, financial 9,173,885,642 1,342,596,639 4,089,980,212 1,421,064,707 1,169,241,000 17,196,768,200 of land stayed as per order of Pursuant to the BRPD Circular no. 12 dated 23 December 2002, the Audit Committee of the Board of institutions and agents & factory Appellate Division. Deposits 19,948,416,257 28,329,237,452 15,106,892,854 5,554,719,577 46,228,068,617 115,167,334,757 Directors as at 31 December 2015 consisted of the following 4 members of the Board: worth Tk. Other accounts 799,013,711 1,598,027,422 877,605,223 - - 3,274,646,356 26.80 lac. Name Status with bank Status with committee Educational qualification Provision and other liabilities 454,472,542 6,292,455,723 2,161,314,028 584,797,303 6,483,247,212 15,976,286,808 C) Mortgage Total liabilities (B) 30,375,788,152 37,562,317,236 22,235,792,317 9,960,581,587 54,480,556,829 154,615,036,121 of 5 katha Mr. Tanjib-Ul Alam Director Convener LL.B Net liquidity gap (A - B) (13,314,013,827) 6,653,552,283 13,177,685,357 33,238,353,952 (17,445,533,433) 22,310,044,332 land with 2 storied Mr. Mohammad Shoeb Director Member BBA building Mrs. Syeda Shaireen Aziz Director Member BBA Liquidity Statement (Analysis of maturity of assets and liabilities) worth Tk. Mr. Rafiqul Islam Khan Director Member HSC as at 31 December 2015 1.00 crore Annexure-A/1 & (d) 1st 49.2.2 Meetings held by the Audit Committee with senior management to consider and review the Bank's charge Financial Statements: Particulars Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total created with Assets During the period under review the Audit Committee held several meetings to oversee/review various functions RJSC. Cash in hand 6,134,942,816 - - - 9,331,738,510 15,466,681,326 M/s Hasan LIM - - Tk. 530.23 - - Artha Exe. Case No. including reviewing the quarterly financial statements in compliance with the Bangladesh Bank circular. Balance with other banks and financial institutions 4,167,121,911 10,354,379,163 1,098,345,061 - - 15,619,846,135 Enterprise lac, BLW 196/04. Next date is fixed on 26.01.2016 Meetings held by the committee during the year by date: Money at call and short notice - - 5,379,167 90,000,000 - 95,379,167 for Return of Warrant Investments 7,308,600 178,689,453 5,222,590,034 5,814,810,456 13,391,418,424 24,614,816,967 of Arrest. 48th Committee Meeting held on 25 April 2015 Loans and advances/investments 6,604,302,693 35,940,817,688 52,109,182,564 37,657,953,389 10,775,244,947 143,087,501,281 4 Mr. Azizul Ex. M/s Shahida BG Tk. 4.11 - UC - 100% - 49th Committee Meeting held on 14 July 2015 Fixed assets including premises, furniture and fixtures - - - - 8,135,621,490 8,135,621,490 Haque Director Trading margin 50th Committee Meeting held on 25 November 2015 Other assets 1,442,275,821 949,958,835 1,292,843,113 346,524,993 2,996,144,698 7,027,747,460 Chowdhury Corporation Non banking assets - - - 792,824,667 - 792,824,667 5 Mr. Anwar Ex. Monowar BG Tk. 5.75 - UC - Margin Tk. - 51st Committee Meeting held on 28 December 2015 Total assets (A) 18,355,951,841 47,423,845,139 59,728,339,939 44,702,113,505 44,630,168,069 214,840,418,493 Hossain Director Industries 0.57 lac & Mr. (Pvt) Ltd 49.2.3 Steps taken for implementation of an effective internal control procedure of the Bank: Monowar and related Liabilities Hossain Business Through circular the Audit Committee placed its report regularly to the Board of Directors of the Bank Tier-II subordinated bond - - - 2,400,000,000 600,000,000 3,000,000,000 mentioning its review results and recommendations on internal control system, compliance of rules and Borrowings from other banks, financial regulations and establishment of good governance within stipulated time. institutions and agents 6,600,003,246 5,766,939,963 7,636,482,405 899,059,479 1,177,504,500 22,079,989,593 E) Compensation of key management personnel Deposits 14,503,220,504 37,647,698,912 22,799,279,462 3,809,159,445 58,625,103,780 137,384,462,103 49.3 Interest rate risk Other accounts 51,600,073 1,496,402,126 4,796,269,108 - - 6,344,271,307 Refer to note: 36.a Provision and other liabilities 345,833,312 1,984,449,150 2,339,788,937 8,408,691,945 7,443,796,056 20,522,559,400 Interest rate risk may arise either from trading portfolio or from non-trading portfolio. The trading portfolio of Total liabilities (B) 21,500,657,135 46,895,490,151 37,571,819,912 15,516,910,869 67,846,404,336 189,331,282,403 48. Events after reporting period the Bank consists of Government treasury bills and bonds of different maturities. Interest rate risk arises from Net liquidity gap (A - B) (3,144,705,294) 528,354,988 22,156,520,027 29,185,202,636 (23,216,236,267) 25,509,136,090 mismatches between the future yield of an asset and their funding cost. Asset Liability Committee (ALCO) monitors the interest rate movement on a regular basis and Treasury Division actively manages the Balance i) Board of Directors in its 489th meeting held on 28 April 2016 decided to recommend 22% cash dividend As at 31 December 2014 Sheet gap profitably on a regular basis. subject to approval of shareholders and regulatory authorities. Particulars Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total Assets 49.4 Equity risk ii) Bank entered into an agreement with International Finance Corporation (IFC) on 9 February 2016 for issuing Cash in hand 3,450,674,312 - - - 7,485,294,201 10,935,968,513 ordinary shares to IFC to the extent of 5.0% of outstanding no. of shares of the bank, which has already been Balance with other banks and financial institutions 1,823,837,378 2,004,930,159 1,145,056,806 - - 4,973,824,343 Equity risk arises from movement in market value of equities held. The risks are monitored by Special approved by the shareholders in an Extra Ordinary General Meeting, held on 27 March 2016 and is applied to Money at call and short notice 1,899,400,000 - 8,979,167 90,000,000 - 1,998,379,167 concerned regulatory authorities for getting Regulators' consent. Under this agreement 46,560,231 shares will Banking Wing under a well designed policy framework. The total market value of equities held was higher Investments 7,448,600 2,259,890,801 1,797,420,318 10,817,332,105 13,827,640,236 28,709,732,060 be issued at taka 28.30 per share which includes 18.30 as premium and face value of taka 10. The proceeds than the total cost price at the balance sheet date (Annexure-C). Loans and advances/investments 9,184,811,007 38,904,335,546 30,213,091,997 31,637,282,383 6,681,080,155 will be treated as Tier-I Capital of the Bank to help the Bank increase its investment and Loan portfolio. In 116,620,601,088 addition to the this issue, IFC also agreed to provide USD 20,000,000 as convertible loan to the Bank for 3 49.5 Operational risk Fixed assets including premises, furniture and fixtures - - - - 8,105,956,571 8,105,956,571 years and the conversion option can be exercised by IFC after 1 year of disbursement of the said loan. Other assets 649,912,892 664,974,765 1,440,076,483 269,769,305 2,473,769,010 5,498,502,455 Operational risk may arise from error and fraud due to lack of internal control and compliance. Management Non banking assets - - - 384,551,746 - 384,551,746 49. General through Internal Control and Compliance Division controls operational procedure of the Bank. Internal Control Total assets (A) 17,016,084,189 43,834,131,271 34,604,624,771 43,198,935,539 38,573,740,173 177,227,515,943 and Compliance Division undertakes periodic and special audit of the branches and departments at the Head 49.1 Core risk management Office for review of the operation and compliance of statutory requirements.The Audit Committee of the Liabilities Board subsequently reviews the reports of the Internal Control and Compliance Division. Tier-II subordinated bond - - - 2,400,000,000 600,000,000 3,000,000,000 Borrowings from other banks, financial BRPD circular no.17 (7 October 2003) and BRPD circular no.4 (5 March 2007) require banks to put in place 49.6 Implementation of BASEL-III an effective risk management system. Bangladesh Bank monitors the progress of implementation of these institutions and agents 9,173,885,642 1,342,596,639 3,837,116,720 1,421,064,707 1,169,241,000 16,943,904,708 Deposits 20,017,842,657 28,468,090,251 15,183,148,080 5,554,719,577 46,228,068,617 115,451,869,182 guidelines through its on-site inspection teams through routine inspection. The risk management systems in Basel III reforms are the response of Basel Committee on Banking Supervision (BCBS) to improve the place at the Bank are discussed below. Other accounts 799,013,711 1,598,027,422 877,605,223 - - 3,274,646,356 banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the source, Provision and other liabilities 454,472,542 5,755,429,510 2,161,314,028 584,797,303 6,483,247,212 15,439,260,595 49.1.1 Credit risk thus reducing the risk of spillover from the financial sector to the real economy. Total liabilities (B) 30,445,214,552 37,164,143,822 22,059,184,051 9,960,581,587 54,480,556,829 154,109,680,841 Net liquidity gap (A - B) (13,429,130,363) 6,669,987,449 12,545,440,720 33,238,353,952 (15,906,816,656) 23,117,835,102 The Committee introduced transitional arrangements to implement the new standards that help to ensure that It arises mainly from lending, trade finance, leasing and treasury businesses.This can be described as the banking sector can meet the higher capital standards through reasonable earnings retention and capital potential loss arising from the failure of a counter party to perform as per contractual agreement with the raising, while still supporting lending to the economy. In line with the Basel framework, Bangladesh Bank Balance with other banks - outside Bangladesh (Nostro Accounts) Bank. The failure may result from unwillingness of the counter party or decline in his/her financial condition. issued transitional arrangements for Basel III implementation in Bangladesh. The phase-in arrangements for as at 31 December 2015 Therefore, the Bank’s credit risk management activities have been designed to address all these issues. Basel III implementation in Bangladesh has been effective from 1 January 2015 in accordance with BRPD Annexure-B Circular no- 18 dated 21 December 2014. The Bank has segregated duties of the officers/executives, involved in credit related activities. Separate Name of the Banks 31 December 2015 31 December 2014 Corporate/SME/Retail divisions have been formed at Head Office which are entrusted with the duties of Internal Capital Adequacy Assessment Process (ICAAP) Account Currency FC Exchange Equivalent FC Exchange Equivalent maintaining effective relationship with customers, marketing of credit products, exploring new business type type amount rate Taka amount rate Taka opportunities etc. Moreover, credit approval, administration, monitoring and recovery functions have been Internal Capital Adequacy Assessment Process (ICAAP) represents the Bank's own assessment of its internal Mashreq Bank, New York, USA CD USD 392,396 78.5003 30,803,201 521,489 77.9494 40,649,779 segregated. For this purpose, three separate units have been formed within the Credit Risk Management capital requirements. The Bank's approach to calculating its own internal capital requirement has been to Habib American Bank, New York, USA CD USD 860,862 78.5003 67,577,926 330,377 77.9494 25,752,678 (CRM) Division. These are (a) Credit Risk Management Unit (b) Credit Administration Unit and (c) Credit take the minimum capital required for credit risk, market risk and operational risk under Pillar-I as the starting HSBC, London, UK CD GBP - 116.3492 - - 120.9697 - Monitoring and Recovery Unit. Credit Risk Management Unit is entrusted with the duties of maintaining asset point, assess whether this is sufficient to cover those risks and then identify other risks (Pillar-II) and assess Citibank N.A. New York, USA CD USD (252,050) 78.5003 (19,785,990) 3,725,801 77.9494 290,423,969 quality, assessing risk in lending, sanctioning credit, formulating policy/strategy for lending operation, etc. For prudent level of capital to meet them. Citibank N.A. Australia CD AUD - 57.3013 - - 63.3417 - retail lending, a separate Retail Finance Centre (RFC) has been formed to assess risk, approve and monitor HSBC, New York, USA CD USD 158,475 78.5003 12,440,334 1,226,176 77.9494 95,579,700 retail loans. The assessment is undertaken using time series of data and Bangladesh Bank's guidelines on Risk Based Capital Adequacy to assess the likelihood of occurrence and potential impact. Purposes of Internal Capital Standard Chartered Bank, New York, USA CD USD (89,730) 78.5003 (7,043,814) 3,239,695 77.9494 252,532,255 Adequacy Assessment Process are to: Standard Chartered Bank, Frunkfurt CD EURO 159,872 85.7969 13,716,548 150,496 94.5955 14,236,263 A thorough risk assessment is done before sanction of any credit facility at Credit Risk Management Units. The Deutsche Bank, Frankfurt, Germany CD EURO 16,180 85.7969 1,388,194 (208,605) 94.5955 (19,733,111) risk assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance i) inform the Board of Directors about Arab National Bank, Riyadh CD SAR 16,340 20.9197 341,820 16,340 20.7696 339,368 of the customer, security of the credit facility etc. The assessment process starts at the relationship level and ends at Credit Risk Management Unit when it is approved/declined by the competent authority. Credit approval -assessing risks Bank of Tokyo Mitsubishi Ltd., Japan CD JPY 8,860,465 0.6519 5,776,137 506,041,413 0.6470 327,408,794 authority has been delegated to the individual executives. Proposals beyond their delegation are approved/ -initiatives to mitigate identified risks Deutsche Bank Trust Comp. USA CD USD 3,073 78.5003 241,251 178,531 77.9494 13,916,423 declined by the Executive Committee and/or the Board of Directors of the Bank. -capital requirement to support the operations in light of identified risks Standard Chartered Bank, Kolkata, India CD ACUD - 78.5003 - - 77.9494 - Bank of Tokyo Mitsubishi Ltd., CD ACUD 8,393 78.5003 658,845 8,333 77.9494 649,590 In determining Single borrower/Large loan limit, the instructions of Bangladesh Bank are strictly followed. ii) comply with Bangladesh Bank's requirement. Kolkata, India Internal audit is conducted at regular intervals to ensure compliance of Bank’s and Regulatory polices. Loans HSBC, Mumbai, India CD ACUD - 78.5003 - - 77.9494 - are classified as per Bangladesh Bank’s guidelines. 49.7 Exchange rates AB Bank Ltd., Mumbai, India CD ACUD (198,996) 78.5003 (15,621,278) (93,421) 77.9494 (7,282,137) Sonali Bank Ltd., Kolkata, India CD ACUD 15,357 78.5003 1,205,510 21,565 77.9494 1,681,001 49.1.2 Asset liability management risk The assets and liabilities as at 31 December in foreign currencies have been converted to TK at the following rates: NIB Bank Limited, Karachi, Pakistan CD ACUD 66,737 78.5003 5,238,849 98,325 77.9494 7,664,386 Standard Chartered Bank, Nepal CD ACUD 4,875 78.5003 382,661 4,875 77.9494 379,975 For better management of asset and liability risk, the Bank has an established Assets Liability Committee Commerz Bank AG. Frankfurt, Germany CD USD 111,130 78.5003 8,723,740 624,484 77.9494 48,678,184 (ALCO) which meets at least once a month. The members of ALCO as at 31 December 2015 were as follows: 2015 2014 Taka Taka Commercial Bank of Ceylon, CD ACUD 7,689 78.5003 603,561 7,774 77.9494 605,992 Colombo, Sri Lanka Bank of Bhutan, Bhutan CD ACUD (2,972) 78.5003 (233,281) 24,752 77.9494 1,929,403 USD 1 = 78.5003 77.9494 Mr. Sohail R K Hussain Managing Director & Chief Executive Officer HSBC, Karachi, Pakistan CD ACUD - 78.5003 - - 77.9494 - ACU 1 = 78.5003 77.9494 Mr. Faruq M. Ahmed Additional Managing Director & CRO Commerz Bank AG. Frankfurt, Germany CD EURO 87,833 85.7969 7,535,835 168,456 94.5955 15,935,161 GBP 1 = 116.3492 120.9697 Mr. Mashrur Arefin AMD (Operations) & CCO Commerz Bank AG. Frankfurt, Germany CD CHF 20,384 79.3935 1,618,323 5,343 78.6454 420,189 AUD 1 = 57.3013 63.3417 Mr. Sheikh Mohammad Maroof DMD & Head of Wholesale Banking Mashreq Bank, Mumbai, India CD ACUD 463,866 78.5003 36,413,608 17,476 77.9494 1,362,206 EUR 1 = 85.7969 94.5955 Mr. Md Abdul Wadud DMD & Head of CRM Mashreq Bank, Mumbai, India CD EURO 4,522 85.7969 387,963 2,756 94.5955 260,744 CHF 1 = 79.3935 78.6454 Mr. Abdur Rahman Head of Branch HDFC Bank Ltd, Mumbai, India CD ACUD 14,076 78.5003 1,105,009 92,339 77.9494 7,197,806 JPY 1 = 0.6519 0.6470 Mr. Zabed Amin Head of Banca Popolare Di Vicenza, Italy CD EURO 29,445 85.7969 2,526,255 4,118 94.5955 389,500 SAR 1 = 20.9197 20.7696 Mr. Mohammad Mahbubur Rahman Chief Financial Officer Standard Chartered Bank, London CD GBP 173,726 116.3492 20,212,890 22,969 120.9697 2,778,531 Mr. Mohammad Azizur Rahman Shuman Head of Risk Management Division Mashreq Bank, London CD GBP 38,977 116.3492 4,534,975 47,744 120.9697 5,775,588 Mr. Md. Monzur Mofiz Head of Commercial Banking Ms. Parul Das Head of Finance The City Bank Limited Report and Financial Statements as at and for the year ended 31 December 2015

Name of the Banks 31 December 2015 31 December 2014 3 Mr. Aziz Al-Kaiser Director Vice-Chairman 2015 2014 Account Currency FC Exchange Equivalent FC Exchange Equivalent Partex Star Group - Taka Taka Capital/shareholders' equity type type amount rate Taka amount rate Taka Managing Director Paid up capital - - Star Particle Board Mills Limited 75.00% Statutory reserve - - Kookmin Bank, Korea CD USD 43,981 78.5003 3,452,520 46,807 77.9494 3,648,592 Partex PVC Inds. Limited 75.00% Share premium - - Commerz Bank AG. Frankfurt CD AUD 126,820 57.3013 7,266,929 66,883 63.3417 4,236,503 New Light Star Apparels Limited 85.00% Other reserve - - Standard Chartered Bank,Mumbai, CD ACUD 189,141 78.5003 14,847,632 45,734 77.9494 3,564,948 Corvee Maritime Co. Limited 75.00% Surplus in profit and loss account/Retained earnings - - India Partex Furniture Inds. Limited 75.00% Total shareholders' equity - - Mashreq Bank, New York, USA (For CD USD (475,648) 78.5003 (37,338,548) 2,482,733 77.9494 193,527,541 Total liabilities and shareholders' equity 18,966,956,242 2,572,822,857 OBU Operation) Partex Builders Limited 75.00% Commerz Bank AG. Frankfurt, CD USD 131,074 78.5003 10,289,384 1,526,570 77.9494 118,995,233 Partex Laminates Limited 75.00% OFF-BALANCE SHEET ITEMS Germany (For OBU Operation) Partex Limited 10.00% Commerz Bank AG. Frankfurt, CD EURO 521,854 85.7969 44,773,466 2,617 94.5955 247,509 Fairhope Housing Limited 80.00% Contingent liabilities Germany (For OBU Operation) Partex Cables Limited 85.00% Acceptances and endorsements 286,929,462 104,920,353 Mashreq Bank Limited, New TD USD 500,000 78.5003 39,250,150 - 77.9494 - Partex Aromarine Logistics Limited 50.00% Letters of guarantee 161,342,755 364,371,404 York, USA Irrevocable letters of credit 234,488,588 38,059,255 Sonali Bank, Kolkata, India TD ACUD 8,039 78.5003 631,068 8,022 77.9494 625,310 Director Bills for collection 434,753,809 438,558,892 Mashreq Bank, New York, USA (For TD USD - 78.5003 - 500,000 77.9494 38,974,700 Danish Condensed Milk (BD) Limited 15.00% Other contingent liabilities - - OBU Operation) Danish Foods Limited 15.00% 1,117,514,614 945,909,904 12,016,185 263,921,673 520,958,968 1,493,352,571 Danish Milk Bangladesh Limited 15.00% Other commitments - - Rubel Steel Mills Limited 15.00% Total Off-Balance Sheet items including contingent liabilities 1,117,514,614 945,909,904 Investment in Shares as at 31 December 2015 Danish Distribution Network Limited 15.00% Annexure-C Voice Tel Limited 25.00% Profit and Loss Account of Islamic Banking Branch Sky Telecommunication Limited 23.00% Quoted rate Type Total market Suburna Bhumi Housing Limited 50.00% for the year ended 31 December 2015 Face Number of Cost of Average per share Sl. of value as at GSP Finance Company (BD) Limited 5.80% Annexure-I (2) Name of the company value shares holding cost as at No. shares 31 Dec 2015 31 Dec 2015 4 Mr. Hossain Mehmood Director A-One Polymer Limited - Note 2015 2014 (Representative of A-One Polymer Taka Taka Taka Taka Taka Taka Taka Quoted Ordinary Share Limited) 1 AB Bank Limited A 10 540,916 40,660,844 75.17 20.90 11,305,144 5 Mr. Hossain Khaled Director Director Profit and investment income 636,867,257 363,003,518 2 Dhaka Bank Limited A 10 1,583,630 53,706,970 33.91 19.70 31,197,511 Bangladesh Finance & Investment - 3 Mercantile Bank Limited A 10 1,245,173 37,621,008 30.21 10.70 13,323,351 Company Ltd. Profit paid on deposits and borrowings etc. (324,325,268) (266,111,583) 4 Mutual Trust Bank Limited A 10 554,954 20,896,707 - 19.50 10,821,603 Anwar Landmarks 20.00% Net investment income 312,541,989 96,891,935 5 Pubali Bank Limited A 10 390,608 23,140,398 59.24 21.60 8,437,133 Anwar Silk Mills Limited 19.61% 6 Rupali Bank Limited A 10 33,288 2,773,450 83.32 32.30 1,075,202 Mehmood Industries (Pvt.) Limited 26.92% Commission, exchange and brokerage 9 5,116,967 4,956,122 Anwar Jute Spinning Mills Limited 20.85% 7 Shahjalal Islami Bank Limited A 10 231,081 6,131,438 26.53 13.50 3,119,594 Other operating income 10 934,803 3,707,363 Anwar Galvanizing Limited 5.68% 8 Standard Bank Limited A 10 1,073,642 23,965,596 22.32 9.20 9,877,506 Total operating income 318,593,759 105,555,420 9 United Commercial Bank Limited A 10 16,694,040 262,746,140 15.74 21.30 355,583,052 Anwar Ispat Limited 33.33% AG Automobiles Limited 36.00% 10 Social Islami Bank Limited A 10 12,067,059 185,265,267 15.35 14.40 173,765,650 Salaries and allowances 20,439,513 20,442,815 11 Trust Bank Limited A 10 1,735,333 63,849,536 36.79 24.10 41,821,525 Hossain Dyeing & Printing Mills Ltd. 19.51% (Unit-1&2) Rent, taxes, insurance, electricity etc. 13,464,810 13,218,483 12 Investment Corporation of Bangladesh A 100 14,330 3,729,350 260.25 106.90 1,531,877 6 Mr. Rajibul Huq Chowdhury Director Managing Director Legal expenses 519,154 83,700 13 Pragati Life Insurance Company Limited A 10 102,787 9,760,864 - 27.10 2,785,528 Aziz Super Garments Limited - 14 Pravati Insurance Company Limited A 10 113,061 2,937,765 25.98 13.00 1,469,793 Postage, stamp, telecommunication etc. 124,318 199,264 Marina Knit Fashion Limited - 15 Mercantile Insurance Company Limited A 10 85,584 2,458,850 28.73 12.60 1,078,358 Stationery, printing, advertisement etc. 353,144 396,070 Khushi Apparels Limited - 16 Peoples Insurance Company Limited A 10 100,200 3,308,460 33.02 16.00 1,603,200 Depreciation and repair of Bank's assets 5,191,182 4,738,152 Ratna Fashion Limited - 17 Continental Insurance Company Limited A 10 55,300 1,701,300 - 14.40 796,320 Other expenses 11 5,144,961 5,603,277 Proprietor 18 Agrani Insurance Company Limited A 10 40,328 1,057,150 - 17.00 685,576 Total operating expenses 45,237,081 44,681,761 R.H. Corporation - 19 Sonar Bangla Insurance Limited A 10 74,938 1,507,600 20.12 15.10 1,131,564 Director Net operating profit 273,356,678 60,873,659 20 Power Grid Company of Bangladesh Limited A 10 767,800 61,666,976 80.32 45.90 35,242,020 A.S.M Chemical Industries Limited 10.00% Provision for loans and advances/investments (116,523,313) (2,390,474) 21 Summit Purbanchol Power Company Limited N 10 105,000 5,927,808 - 55.20 5,796,000 7 Mrs. Syeda Shaireen Aziz Director Director Provision for Off-Balance Sheet exposures (1,685,047) (3,839,848) 22 Saif Powertec Limited A 10 387 21,570 55.74 66.80 25,852 Partex Corporate Limited 20.00% Total provision (118,208,360) (6,230,322) 23 Dhaka Electricity Supply Company Limited A 10 432,129 53,060,381 122.79 51.80 22,384,282 Sattar Glass Factory Limited 20.00% Total profit before taxes 155,148,318 54,643,337 24 Summit Power Limited A 10 430,000 17,076,000 39.71 39.70 17,071,000 Sakhi Fisheries Limited 10.00% 25 Khulna Power Company Limited A 10 240,000 18,571,760 77.38 74.90 17,976,000 8 Mrs. Tabassum Kaiser Director Director 26 BSRM Steels Limited A 10 163,170 29,505,429 - 96.30 15,713,271 Fairhope Housing Limited 20.00% 27 Beximco Limited A 10 840,835 100,801,276 119.88 29.00 24,384,215 Notes to the Balance Sheet and Profit and Loss Account of Islamic Banking Branch Partex Agro Limited 50.00% 28 Matin Spinning Mills Ltd N 10 842,923 37,620,159 44.63 40.70 34,306,966 GSP Finance Co. (BD) Limited 5.80% for the year ended 31 December 2015 29 Heidelberg Cement Bangladesh Limited A 10 25,334 16,569,053 654.02 562.10 14,240,241 (Shareholder) 30 AFC Agro Biotech Limited A 10 354,598 22,557,460 - 65.80 23,332,548 1. Cash 9 Mr. Rafiqul Islam Khan Director Chairman & Managing Director 2015 2014 31 IDLC Finance Limited A 10 60,853,549 634,539,444 10.43 63.60 3,870,285,716 Pakiza Dyeing & Printing Industries 35.00% Taka Taka 32 Perfume Chemical Ind. Limited Z 10 28 3,500 125.00 59.00 1,652 Limited 1.1 Cash in hand 33 Raspit Inc. (BD) Limited Z 10 366,000 6,153,414 16.81 1.90 695,400 Pakiza Textile Mills Limited 75.00% 34 Rangamati Food Products Limited Z 10 64,500 645,000 10.00 13.80 890,100 Pakiza Spinning Mills (Pvt.) Limited 75.00% In local currency 1,201,545 4,569,625 35 German Bangla Joint Venture Foods Limited Z 10 21,000 210,000 10.00 3.60 75,600 Garden Textile Mills (Pvt.) Limited 75.00% In foreign currency - - 36 Somorita Hospital Limited A 10 135 - - 80.50 10,868 Pakiza Cotton Spinning Mills (Pvt.) Ltd 75.00% 1,201,545 4,569,625 Total 1,752,147,923 4,753,841,218 Momtex Limited - 1.2 Balance with Bangladesh Bank and its agent bank(s) Pakiza Knit Composite Limited - Unquoted Ordinary Shares Director In local currency 2,073,266,990 141,671,231 1 Central Depository Bangladesh Limited 10 2,284,721 6,277,770 2.75 Phoenix Insurance Co. Limited - In foreign currency - - 2 KARMA Sangsthan Bank Limited 100 100,000 10,000,000 100.00 Phoenix Finance & Investment Limited - 2,073,266,990 141,671,231 3 Industrial & Infrastructural Development 10 7,329,110 42,453,820 5.79 Phoenix Securities Limited - Finance Company Limited 2. Balance with other banks and financial institutions 4 Venture Investment Partners Bangladesh 100 202,176 18,000,000 89.03 Partner Pakiza Fabrics 50.00% Limited In Bangladesh (Note - 2.1) 72,728,751 619,731,362 Total 76,731,590 Pakiza Textile 50.00% Outside Bangladesh - - 10 Mr. Mohammad Shoeb Director Chairman Unquoted redeemable preference Shares 72,728,751 619,731,362 1 Unique Hotel & Resort Limited 100 750,000 45,000,000 60.00 Phoenix Insurance Company Limited 3.84% 2 Desh Cambridge Kumargaon Power Limited 100 66,661 6,666,021 100.00 Vice-Chairman 2.1 In Bangladesh Total 51,666,021 Phoenix Finance & Investment Limited 2.60% Phoenix Securities Limited 6.33% Mudaraba savings deposit accounts Schedule of fixed assets including premises, furniture and fixtures Director as at 31 December 2015 Rangdhanu Spinning Mills Limited 6.86% Social Islami Bank Ltd. 799,970 771,973 South East Bank Ltd. 9,354,308 40,421,446 Annexure-D Phoenix Spinning Mills Limited 4.00% Phoenix Textiles Mills Limited 2.50% 10,154,278 41,193,419 Particulars Cost/Revaluation Depreciation/Amortisation Written 11 Mr. Tanjib-Ul Alam Independent - - Mudaraba Short Notice Deposits Balance Additions Adjustments Disposals Balance Balance Charged Disposals/ Balance down value Director as at during during the during the as at as at during adjustments as at as at 1 Jan 2015 the period year year 31 Dec 2015 1 Jan 2015 the year during the 31 Dec 2015 31 Dec 2015 Annexure-G AB Bank Ltd. 57,294,690 20,737,043 Bank Alfalah Ltd. 5,279,783 157,800,900 year A. Disclosure regarding outstanding REPO as at 31 December 2015 Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka 62,574,473 178,537,943 Own assets Sl. Counterparty name Agreement date Reversal date Amount (1st leg Land 4,232,440,000 - - - 4,232,440,000 - - - - 4,232,440,000 Mudaraba term deposit accounts no. Entities where they have cash consideration) Building 2,056,538,234 37,731,442 - - 2,094,269,676 4,955,706 59,588,115 - 64,543,821 2,029,725,855 interest Social Islami Bank Ltd. - - Work-In-Progress-Building 402,482,070 57,913,225 (38,231,443) - 422,163,852 - - - - 422,163,852 1 Janata Bank Limited 29 December 2015 05 January 2016 2,746,189,720 Export Import Bank of Bangladesh Ltd. - - Furniture and fixtures 921,863,216 192,031,581 (107,270,010) - 1,006,624,787 366,767,169 88,686,366 - 455,453,535 551,171,252 2 Agrani Bank Limited 30 December 2015 06 January 2016 2,024,175,868 South East Bank Ltd. - 200,000,000 Office equipment and machinery 1,755,946,460 394,930,852 (102,691,871) - 2,048,185,441 1,165,801,631 263,673,099 - 1,429,474,730 618,710,711 AB Bank Ltd. - 200,000,000 Software 260,463,259 19,862,159 - - 280,325,418 63,629,352 13,391,465 - 77,020,817 203,304,601 B. Disclosure regarding outstanding Reverse REPO as at 31 December 2015 Jamuna Bank Ltd. - - Work-In-Progress-Software 28,091,157 17,434,837 (9,068,660) - 36,457,335 - - - - 36,457,335 - 400,000,000 Bank's vehicles 225,766,205 26,628,113 - (60,500) 252,333,818 176,480,172 34,266,261 (60,499) 210,685,934 72,728,751 619,731,362 41,647,883 Sl. Counterparty name Agreement date Reversal date Amount (1st leg Sub-total 9,883,590,601 746,532,209 (257,261,984) (60,500) 10,372,800,327 1,777,634,030 459,605,306 (60,499) 2,237,178,837 8,135,621,490 no. Entities where they have cash consideration) 3 Investments in shares & securities Leased assets interest Vehicles ------1 International Leasing and 28 December 2015 04 January 2016 183,389,741 i) Investment classified as per Bangladesh Bank Circular Sub-total ------Financial Services Ltd. Grand total 9,883,590,601 746,532,209 (257,261,984) (60,500) 10,372,800,327 1,777,634,030 459,605,306 (60,499) 2,237,178,837 8,135,621,490 Held to Maturity (HTM) 200,000,000 210,000,000 C. Disclosure regarding overall transactions of REPO and Reverse REPO as at 31 December 2015 200,000,000 210,000,000 Schedule of fixed assets including premises, furniture and fixtures ii) Investment securities are classified as follows as at 31 December 2014 Sl. Securities sold under REPO Minimum Maximum outstanding Daily average no. outstanding during during the year outstanding during a) Government bond 1 year Islamic bond - - Particulars Cost/Revaluation Depreciation/Amortisation Written the year the year 2 years Islamic bond 200,000,000 210,000,000 Balance Additions Adjustments Disposals Balance Balance Charged Disposals/ Balance down value 1 with Bangladesh Bank Nil Nil Nil 2 with other Banks & Financial 117,898,323 4,124,346,956 1,082,933,929 b) Other investments - - as at during during the during the as at as at during adjustments as at as at 200,000,000 210,000,000 1 Jan 2014 the period year year 31 Dec 2014 1 Jan 2014 the year during the 31 Dec 2014 31 Dec 2014 Institutions year 4 Investments Taka Taka Taka Taka Taka Taka Taka Taka Taka Taka Sl. Securities purchased under Minimum Maximum outstanding Daily average Own assets no. Reverse REPO outstanding during during the year outstanding during i) Investments Land 3,453,520,000 - 778,920,000 - 4,232,440,000 - - - - 4,232,440,000 the year the year Building 1,925,045,744 - 131,492,490 - 2,056,538,234 75,097,445 49,067,016 (119,208,755) 4,955,706 2,051,582,528 1 with Bangladesh Bank 170,000,000 8,600,000,000 532,342,466 Inside Bangladesh Work-In-Progress-Building 248,160,155 154,321,915 - - 402,482,070 - - - - 402,482,070 2 with other Banks & Financial 23,405,211 3,945,867,869 276,455,753 Furniture and fixtures 809,939,425 111,923,791 - - 921,863,216 292,286,912 74,480,257 - 366,767,169 555,096,047 Institutions Bai-muazzal 764,833 73,747,119 Office equipment and machinery 1,434,038,880 324,608,081 - (2,700,501) 1,755,946,460 949,320,248 219,174,880 (2,693,497) 1,165,801,631 590,144,829 Murabaha 16,392,896,286 1,245,669,736 Software 226,355,464 34,107,795 - - 260,463,259 51,134,286 12,495,066 - 63,629,352 196,833,907 Geographical Segment Reporting as at 31 December 2015 Hire purchase shirkatul melk (HPSM) 191,096,103 181,566,563 Quard 960,850 14,921,980 Work-In-Progress-Software 11,151,078 43,248,194 (26,308,115) - 28,091,157 - - - - 28,091,157 Annexure-H 16,585,718,072 1,515,905,398 Bank's vehicles 204,471,225 11,804,980 12,940,000 (3,450,000) 225,766,205 135,770,961 31,219,211 9,490,000 176,480,172 49,286,032 Division Dhaka Division Chittagong Rajshahi Khulna Sylhet Rangpur Barisal Total Outside Bangladesh - - Sub-total 8,312,681,971 680,014,756 897,044,375 (6,150,501) 9,883,590,601 1,503,609,852 386,436,430 (112,412,252) 1,777,634,030 8,105,956,571 Division Division Division Division Division Division 16,585,718,072 1,515,905,398 Leased assets Interest Income 11,958,309,422 2,385,955,771 428,438,097 185,277,537 64,429,413 269,628,589 32,720,073 15,324,758,903 Vehicles 12,940,000 - - (12,940,000) - 12,939,999 - (12,939,999) - - Interest Expenses (6,656,002,567) (2,004,577,431) (270,879,903) (238,260,807) (481,190,342) (129,231,678) (38,724,029) (9,818,866,758) ii) Bills purchased and discounted Sub-total 12,940,000 - - (12,940,000) - 12,939,999 - (12,939,999) - - NII 5,302,306,855 381,378,340 157,558,194 (52,983,270) (416,760,929) 140,396,911 (6,003,955) 5,505,892,145 Grand total 8,325,621,971 680,014,756 897,044,375 (19,090,501) 9,883,590,601 1,516,549,851 386,436,430 (125,352,251) 1,777,634,030 8,105,956,571 Pool Income 15,350,154,171 2,381,007,003 303,014,005 266,738,147 657,659,584 162,410,470 39,483,051 19,160,466,431 Payable Inside Bangladesh Pool Expenses (16,731,471,040) (1,866,157,191) (269,467,736) (90,044,899) (9,164,157) (179,113,728) (15,047,680) (19,160,466,431) Inland bills purchased 665,000 12,922,270 Statement of tax position as at 31 December 2015 NPI (1,381,316,869) 514,849,811 33,546,268 176,693,248 648,495,427 (16,703,258) 24,435,371 - Payable Outside Bangladesh Interest Income on Investments 4,390,718,045 ------4,390,718,045 Annexure-E Foreign bills purchased and discounted - - Commission Income 1,019,065,921 72,837,206 4,084,508 9,518,926 391,221 259,946 913,891 1,107,071,619 Accounting Assessment Tax provision Tax as per Excess/ Tax paid Present status 665,000 12,922,270 year year made on the assessment (shortage) Exchange Gain / Loss 776,148,885 569,335 331,318 57,824 45,695 53,907 935 777,207,899 16,586,383,072 1,528,827,668 basis of of provision Fees and other Income 855,980,179 100,392,435 13,625,183 9,572,952 15,874,594 5,935,980 2,054,407 1,003,435,729 accounts Total other Income 7,041,913,030 173,798,976 18,041,009 19,149,702 16,311,511 6,249,832 2,969,233 7,278,433,292 5 Fixed assets including premises, furniture and fixtures Taka Taka Taka Taka Operating income 10,962,903,016 1,070,027,128 209,145,471 142,859,680 248,046,009 129,943,485 21,400,649 12,784,325,437 2003 2004-2005 190,000,000 264,849,320 (74,849,320) 117,624,734 Reference application filed to High Court Staff Cost 2,608,166,863 312,288,231 77,218,906 53,198,788 80,580,916 39,651,896 11,677,466 3,182,783,066 Cost 2004 2005-2006 442,791,678 315,574,683 127,216,995 283,102,018 Reference application filed to High Court Other Cost 2,650,039,776 164,476,873 30,815,843 24,049,799 41,056,398 13,173,414 4,817,200 2,928,429,303 Furniture and fixtures 14,699,649 14,699,649 Office equipment and machinery 16,673,966 16,622,097 Total Operating Expenses 5,258,206,639 476,765,104 108,034,750 77,248,587 121,637,314 52,825,310 16,494,666 6,111,212,369 Name of Directors and their interest in different entities as at 31 December 2015 31,373,615 31,321,746 Operating Profit 5,704,696,377 593,262,024 101,110,721 65,611,093 126,408,695 77,118,176 4,905,983 6,673,113,068 Accumulated depreciation (21,957,211) (18,793,341) Annexure-F Total Debt Charge (1,648,076,415) (513,939,719) 21,293,117 (9,002,771) (12,510,344) (14,590,611) (1,673,257) (2,178,500,000) 9,416,404 12,528,405 PBT 4,056,619,961 79,322,305 122,403,839 56,608,322 113,898,351 62,527,564 3,232,725 4,494,613,068 Sl Status % Name of Directors Entities where they have interest 6 Other assets no. with CBL of Interest Segment wise Advances 113,846,727,872 21,115,851,361 3,494,054,257 1,644,340,874 538,755,491 2,194,553,254 253,218,173 143,087,501,281 1 Mr. Rubel Aziz Chairman Managing Director Stationery and stamps 161,506 387,166 Partex Beverage Limited 1.00% Segment wise Deposits 99,006,020,223 27,632,169,392 3,636,349,714 2,778,977,550 8,366,785,023 1,794,921,299 513,510,209 143,728,733,410 Advance deposits and advance rent 18,110,663 21,766,343 Partex Plastics Limited 85.00% Advance tax 1,676,634 2,714,002 Partex Accessories Limited 37.50% Balance Sheet of Islamic Banking Branch as at 31 December 2015 Profit receivable from Investment 4,010,677 30,627,055 Partex Plastics Furniture Limited 37.50% Annexure-I (1) 23,959,480 55,494,566 Fotoroma Limited 10.00% Partex Properties Limited 85.00% Note 2015 2014 7 Borrowings from other banks, financial institutions and agents Partex Foundry Limited 80.00% PROPERTY AND ASSETS Taka Taka Cash Partex Jute Mills Limited 75.00% In Bangladesh (Note- 7.1) 7,000,000,000 - Cash in hand (including foreign currencies) 1 1,201,545 4,569,625 Outside Bangladesh - - Partex Corporate Limited 50.00% Balance with Bangladesh Bank and its agent bank(s) 2,073,266,990 141,671,231 7,000,000,000 - Partex Aviation Limited 50.00% (Including foreign currencies) 2,074,468,535 146,240,856 Partex Petro Limited 85.00% Balance with other banks and financial institutions 2 7.1 In Bangladesh Sakhi Fisheries Limited 90.00% In Bangladesh 72,728,751 619,731,362 Outside Bangladesh - - Partex Batteries Limited 80.00% 72,728,751 619,731,362 Bangladesh Bank for 100 Days - - Partex Building Materials Limited 80.00% Placement with banks & other financial institutions - - Bangladesh Bank for 5 Months - - Director Bangladesh Bank for 6 Months 7,000,000,000 - Partex Real Estate Limited 15.00% Investments in shares & securities 3 7,000,000,000 - Partex Sugar Mills Limited 15.00% Government 200,000,000 210,000,000 Others - - Partex Rotor Spinning Mills Limited 37.50% 8 Other liabilities 200,000,000 210,000,000 Partex Energy Limited 37.50% Investments 4 Janata Insurance Co. Limited 1.33% General investments etc. 16,585,718,072 1,515,905,398 Profit suspense account 9,138,759 8,388,225 Partex Spinning Mills Limited 25.00% Bills purchased and discounted 665,000 12,922,270 Expense payable 526,163 339,600 Partex Ceramics Limited 25.00% 16,586,383,072 1,528,827,668 Profit payable account 124,600,311 30,886,021 2 Mr. Deen Mohammad Director Chairman Fixed assets including premises, furniture and fixtures 5 9,416,404 12,528,405 Provision for investment 226,767,432 78,072,204 Phoenix Finance & Investment Limited 3.15% Other assets 6 23,959,480 55,494,566 Provision for Off-Balance Sheet Exposures 11,197,725 9,512,678 Non-banking assets - - Profit Payable to Head Office 155,148,318 54,643,337 Apollo Ispat Limited 3.29% Total assets 18,966,956,242 2,572,822,857 Phoenix Spinning Mills Limited 37.30% Profit mark up account 501,542,389 109,225,746 Rangdhanu Spinning Mills Limited 7.20% LIABILITIES AND CAPITAL Unrealized Compensation 2,339,921 6,832,102 Phoenix Securities Limited 5.00% Liabilities: Realized Compensation 5,150,831 1,873,139 MD & Chairman Borrowings from other banks, financial institutions and agents 7 7,000,000,000 - Branch adjustment account 3,701,369,755 36,182,687 Phoenix Textile Mills Limited 60.00% Others 14,648,278 13,975,083 Deposits and other Accounts 4,752,429,881 349,930,822 Eastern Dyeing & Calendaring Works Ltd. 42.00% Mudaraba and Manarah savings deposits 3,640,921,327 631,037,855 Director Mudaraba term deposits 3,460,319,276 1,480,784,191 Phoenix Insurance Company Limited 2.89% Al-wahdia and Manarah current deposits and other accounts 110,723,133 103,283,005 Bills payable 2,562,625 7,786,984 7,214,526,361 2,222,892,035 Other liabilities 8 4,752,429,881 349,930,822 Total liabilities 18,966,956,242 2,572,822,857 The City Bank Limited Report and Financial Statements as at and for the year ended 31 December 2015

Notes to the Balance Sheet and Profit and Loss Account of Islamic Banking Branch Liabilities: Notes to the Balance Sheet and Profit and Loss Account of Off-Shore Banking Units for the year ended 31 December 2015 Borrowings from other banks, financial institutions 3 54,069,539 4,244,475,058 4,287,217,000 for the year ended 31 December 2015 and agents 9 Commission, exchange and brokerage 2015 2014 2015 2014 Deposits and other Accounts 3,210,350 252,013,405 457,485 USD Taka Taka Taka Taka Other liabilities 4 75,369,228 5,916,507,031 3,897,350,580 1 Balance with other banks and financial institutions Total liabilities 132,649,117 10,412,995,494 8,185,025,065 In Bangladesh 10,000,000 785,003,000 - Commission on letters of credit 1,198,171 1,042,376 Outside Bangladesh 225,786 17,724,302 312,770,283 Commission on letters of guarantee 210,500 93,000 10,225,786 802,727,302 312,770,283 Commission on export bills 11,500 43,934 Capital/shareholders' equity OBU maintain its own account relating Offshore Banking business separately in Mashreq Bank, New York, USA. Commission on bills purchased 46,783 107,443 Paid up capital - - - Commission on accepted bills 1,371,308 1,051,856 2 Loans and advances Commission on OBC, IBC etc. 822 1,154 Statutory reserve - - - Commission on PO, DD, TT, TC, etc. 24,300 44,700 Share premium - - - Loans, cash credits, overdrafts, etc. Other Fees and charges (Note - 9.1) 2,253,584 2,571,659 Other reserve - - - Term Loan 64,738,861 5,082,020,004 5,475,342,460 Short Term Loan 13,415,168 1,053,094,750 - Other commission - - Surplus in profit and loss account - - - 5,116,967 4,956,122 78,154,029 6,135,114,754 5,475,342,460 - - - Bills purchased and discounted 44,115,375 3,463,070,211 2,375,819,989 Exchange gain - - Total liabilities and shareholders' equity 132,649,117 10,412,995,494 8,185,025,065 122,269,405 9,598,184,965 7,851,162,449 Brokerage - - - - 3 Borrowings from other banks, financial institutions and agents OFF-BALANCE SHEET ITEMS 5,116,967 4,956,122 In Bangladesh 10,000,000 785,003,000 - Outside Bangladesh 44,069,539 3,459,472,058 4,287,217,000 9.1 Other fees and charges Contingent liabilities 54,069,539 4,244,475,058 4,287,217,000 Acceptances and endorsements - - - Service charges on deposits 1,308,645 1,995,802 4 Other liabilities Cheque book issue fees 195,350 207,525 Letters of guarantee - - - Irrevocable letters of credit 438,864 34,450,920 50,089,294 Government Levy and VAT payable 8,329 653,827 636,336 Investment processing fees 652,408 259,832 Payable to main operation 73,722,317 5,787,224,018 3,786,529,209 Clearing return 86,500 99,500 Bills for collection 368,496 28,927,072 - Provision for loans and advances 1,212,322 95,167,658 77,544,889 Charges on account closing and transfer 10,681 9,000 Other contingent liabilities - - - Provision for off balance sheet exposure 12,347 969,254 500,893 2,253,584 2,571,659 Interest suspense account 48,220 3,785,255 31,016 807,360 63,377,992 50,089,294 Interest payable 280,762 22,039,910 32,108,237 Others 84,931 6,667,109 - 10 Other operating income Other commitments - - - 75,369,228 5,916,507,031 3,897,350,580 Total Off-Balance Sheet items including contingent liabilities 807,360 63,377,992 50,089,294 Postage/telex/SWIFT/fax recoveries 526,255 760,555 5 Interest income Locker rent 39,946 76,250 Miscellaneous earnings (Note - 10.1) 368,601 2,870,558 Loan and advances 4,373,581 343,327,447 396,147,638 934,803 3,707,363 Bills purchased and discounted 2,235,979 175,525,022 80,616,640 6,609,560 518,852,469 476,764,278 10.1 Miscellaneous earnings includes earning from early settlement of loan, issuing various certificate and bank 6 Commission, exchange and brokerage statements on demand of customers. Profit and Loss Account of Off-Shore Banking Units Commission income 131,586 10,329,573 36,602,407 for the year ended 31 December 2015 Exchange gain (3,902) (306,314) 5,188,632 11 Other expenses 127,684 10,023,259 41,791,039 Annexure-J (2) Online communication expenses 1,347,000 1,595,000 Training, seminar and workshop 30,720 175,133 Note 2015 2014 HIGH LIGHTS Entertainment 137,132 271,046 USD Taka Taka Conveyance 106,480 73,219 Annexure- K Newspapers 3,936 3,220 Miscellaneous expenses 3,519,693 3,485,659 Interest income 5 6,609,560 518,852,469 476,764,278 Figures in million unless specified 5,144,961 5,603,277 Interest paid on borrowings (4,540,982) (356,468,452) (262,992,563) As at As at Sl. Particulars 31 December 31 December Net interest income 2,068,578 162,384,017 213,771,715 no. 2015 2014 Balance Sheet of Off-Shore Banking Units As at 31 December 2015 1 Paid-up capital Taka 8,757.98 8,340.93 Annexure-J (1) Commission and exchange 6 127,684 10,023,259 41,791,039 2 Total capital Taka 22,574.87 23,484.06 Note 2015 2014 Other operating income - - - 3 Capital surplus/(deficit) Taka 6,479.88 8,254.91 PROPERTY AND ASSETS USD Taka Taka 4 Total assets Taka 214,840.42 177,227.52 Total operating income 2,196,263 172,407,276 255,562,754 5 Total deposits Taka 143,728.73 118,726.52 Cash 6 Total loans and advances/investments Taka 143,087.50 116,620.60 Cash in hand (including foreign currencies) - - - 7 Total contingent liabilities and commitments Taka 50,125.87 46,342.36 Balance with Bangladesh Bank and its agent bank(s) - - - Rent, taxes, insurance, electricity, etc. - - - 8 Credit deposit ratio ** % 79.20% 83.52% (Including foreign currencies) - - - Legal expenses 5,451 427,876 424,767 9 Percentage of classified loans/investments against total loans and advances/investments % 7.58% 5.88% Balance with other banks and financial institutions Other operating expenses 141,029 11,070,795 474,890 10 Amount of classified loans/investments during the period Taka 10,844.78 6,858.62 In Bangladesh 10,000,000 785,003,000 - Total operating expenses 146,479 11,498,671 899,657 11 Provisions kept against classified loans/investments Taka 4,626.94 2,971.90 Outside Bangladesh 1 225,786 17,724,302 312,770,283 12 Provision surplus/(deficit) against classified loans/investments Taka 78.97 4.91 10,225,786 802,727,302 312,770,283 Net operating profit 2,049,783 160,908,605 254,663,097 13 Cost of fund % 5.91% 6.30% 14 Interest earning assets Taka 167,912.60 139,522.17 Money at call and short notice - - - 15 Non-interest earning assets Taka 46,927.81 37,705.35 Investments in shares & securities Provision for loans and advances/investments (224,493) (17,622,769) (70,945) 16 Return on investment (ROI) % 18.76% 11.14% Government - - - 17 Return on assets (ROA) % 1.90% 1.42% Provision for Off-Balance Sheet exposures (5,966) (468,361) (500,893) Others - - - 18 Net asset value per share* Taka 29.13 27.72 Provision for diminution in value of investments - - - 19 Profit after tax and provision Taka 3,578.88 2,214.94 - - - 20 Income from investment Taka 4,390.72 2,789.92 Loans and advances 2 Other provision - - - 21 Earnings per share* Taka 4.09 2.53 Loans, cash credits, overdrafts, etc. 78,154,029 6,135,114,754 5,475,342,460 Total provision (230,459) (18,091,130) (571,838) 22 Net income per share* Taka 4.09 2.53 Bills purchased and discounted 44,115,375 3,463,070,211 2,375,819,989 23 Price earning ratio Times 4.99 8.62 Total profit before taxes 1,819,324 142,817,475 254,091,259 122,269,405 9,598,184,965 7,851,162,449 Fixed assets including premises, furniture and fixtures - - - * Net asset value, earnings per share and net income per share for the comparative period was adjusted for bonus Other assets 153,926 12,083,227 21,092,333 share of 2014, credited in 2015. Non-banking assets - - - ** As per Bangladesh Bank Reporting Total assets 132,649,117 10,412,995,494 8,185,025,065

LIABILITIES AND CAPITAL